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Why should you start saving for your retirement in your 20’s?

According to research, up to 48% of people have to face lifestyle compromises after their retirement. The reason being they did not save enough or plan enough for their retirement phase. There may be dozens of reasons for not saving for retirement, but one reason to save will have to keep your retirement life secured. […]

According to research, up to 48% of people have to face lifestyle compromises after their retirement. The reason being they did not save enough or plan enough for their retirement phase. There may be dozens of reasons for not saving for retirement, but one reason to save will have to keep your retirement life secured.

Here are some reasons, why you should start saving for retirement now:

  • You don’t want to rely on Social Security.
  • You don’t want to be a burden on your children.
  • You have access to a tax-deferred retirement account that will reduce the taxes you pay.
  • The compound effect of investing in that account over time can give you a more comfortable and happier retirement.

Before you actually start saving for retirement, make sure you set your goals. The goals you set should be realistic and achievable. You may think you have plenty of time until your retirement, but why put off saving for tomorrow when you can start saving today.

If you have access to an employer retirement plan, take advantage of it. Most employers will match some of your contributions, so you’ll benefit from having an extra boost to your savings. And with pre-tax deductions, you won’t even notice your money is being put away.

If you want to save outside of your employer program, there still are quite a few options, for example, saving in gold. With saving in gold, you will be sure about your money being secure also gold as an asset is highly liquid. Another option could be saving in a savings account, here you will be able to accrue on interest but, there are a few risks associated with banks.

What are the factors that need to be considered before investing in a scheme?

The type of assets you’re willing to invest in has a significantly huge impact on the return, along with the amount you’re investing in.

Market Risk

The opportunity that is ready to offer a high return in comparatively fewer time span, involve most risk in. The ones with fewer interest rates usually involve lesser risks, but the best way to actually save is to invest in a precious metal like gold, less risk, and high returns.

Risk Tolerance

Investment is very similar to gambling, therefore if you have the tolerance to bear any losses only then invest in high risk, high return programs. If you’re not willing to take any risk and play it slow then go for schemes that involve minimum risk while producing maximum revenues.

Retirement Horizon

Your targeted retirement age plays a major role in deciding on the kind of investment you should make. If you’ve started saving in your 20’s then you might have a lot of time to save so that is why you can take it slow, but if your retirement is any sooner than you might need to buckle up. Now when you’ve finally decided to save before you hit your 30’s, saving up in gold is amongst the most secure ways. With 31p1’s gold savings account, you can start saving for your retirement little by little with no minimum limit to save. Now you can have a happy and sound retirement by turning your spending habits into saving habits. Sign up now at www.31p1.com

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