When you’re a young twenty-something, retirement isn’t something that occupies your mind often. You have a ton of time to save for retirement, so why worry about it now?
Well, for people who have the benefit of 401Ks, they don’t have to think too much about retirement. They automatically get money taken out of their paycheck and put towards retirement, and that money is matched by their employer.
But what if you’re a freelance worker without the benefit of a 401K? What should your retirement plans look like?
Whether you’re a writer or you own an online business, we’re here to help you answer that very question. Here’s what you need to know about saving for retirement as a freelance worker.
Don’t Put It Off
It’s never too early to start saving for retirement, and it’ll quickly become too late. If you want to retire at a reasonable age, it’s time to stop making excuses and start saving now.
The earlier you start saving for retirement, the better off you’ll be. If you start saving at a young age, you can either put less money away each month, giving you more spending money, or you can save faster and retire at a younger age.
When you’re thinking about your retirement plan, you need to consider how much money you’ll want to have when you retire. To determine that number, there are several factors you’ll need to consider.
First, how much money will you need to live off of each year? Some people are happy living off of $35,000 a year, while others might want upwards of $100,000 per year. Be realistic about your spending habits, otherwise, you may run out of money in retirement.
You should also keep inflation in mind. While $35,000 is enough for you to live off of in 2019, that amount of money will be worth less in thirty or forty years. It’s helpful to discuss this with a financial advisor who can help you find the perfect amount of money to retire with.
Automate Monthly Savings
Now that you’ve determined how much you want to retire with, you can calculate how much money, per month, you should put towards retirement. Once you’ve done that, it’s time to start saving!
The best way to save for retirement is to automate monthly savings. You can set up an automatic savings amount through your bank account. For example, if you want to put $100 towards retirement every month, you can make that automatic so it goes right from your paycheck into your retirement fund.
With this strategy, you won’t think twice about saving for retirement because it will happen automatically, without you even noticing.
It’s one thing to put money into a savings account meant for your retirement funds. But that money will sit there and make little to no interest. Why not make money off of your retirement fund so you have a lot more when you retire?
Consider investing in index mutual funds that will give you a nice return over the next forty years. Utilize online tools like investormint to help you make the best investing decisions.
Don’t Put Off Your Retirement Plans Any Longer
It’s time to stop making excuses and start saving for your retirement today! As a freelance worker, it’s especially important to create retirement plans that work for well for you.
Looking for more money-saving advice? Check out our business and finance blogtoday!
Originally posted on https://www.articlecity.com/blog/a-brief-guide-to-retirement-plans-for-freelancers-who-hate-talking-about-money/