You hear that you should save for retirement all the time. However, you never hear about how you should do it. So, what should you do? Well, here’s a basic blueprint for retirement saving for your convenience.

In your 20s, the only one thing you need to remember about retirement is to start saving for it. Retirement may be a million years away but saving for retirement is a marathon, not a sprint. Money that you put into a retirement account now, no matter how small, will gain interest and continue to grow until it’s withdrawn. The sooner you start saving, the sooner that money will begin to gain interest and the longer it will gain it. Save what you can and watch your money grow.

When you’re in your 30s, saving for retirement becomes more complicated. If you haven’t started saving, start now. It’s better to start late than not to start at all. After that, start paying off your debts. Money used towards debt is money not being saved for retirement. Get your debt paid off and get that load off your shoulders. Also, if you can, contribute to an HSA. Any money you put into it can be used for medical expenses. However, you can withdraw from it for any expense, without penalty, once you turn 65. Basically, if you don’t have any major medical issues, it’s acts as another savings account.

Life gets even more complicated in your 40s and you may be tempted to make many crazy decisions. Don’t make them. It’s in your 40s when you should max out your contribution limits where you can. Your retirement account will start making real money at this point and you need to take advantage of it. You should also start planning how you want to live during your retirement. You have forty years of life experience, meaning that you know how to make a realistic plan, unlike in your twenties. You can’t live a good retirement without a plan.

Once you’re in your 50s, you’re in the end game. This is the time where your contribution limits increase, and you must take advantage of it. Also, you must get a financial adviser. You may be smart, but it’s always a good idea to hire someone who can help protect what you’ve saved and maximize its potential.

It’s not too hard to save for retirement if you use this blueprint. Now get to saving for your retirement. For more information, please contact us.