Yup, that’s right, I am talking about retirement. I suspect you know retirement is important. If you agree, but you haven’t acted on it, now is the time to excavate why.
- What is it about saving for retirement that is off putting?
- Does it feel hard to connect with something that is so many years away?
- Or, is it coming up soon, and perhaps you feel unprepared, and the anxiety keeps you from doing more?
- Do you have trouble imagining living off of less than you do now, in order to contribute towards retirement?
Its normal to have anxiety about the unknown. I encourage you to allow the emotions to move through you, and to approach the subject of retirement with curiosity and openness. It will serve your future self to give it some attention now:
1) You have until April 15th to make your 2024 contribution to an IRA
Did you know that you can contribute to an IRA or Roth IRA for last year until April 15th of this year? This is true every year, you have until the tax return deadline to finalize your IRA contributions for the previous calendar year. If you could part with even a few hundred dollars, and contribute to a retirement account, that money could grow into much more when you are ready to retire–leading to a grateful future you!
2) Getting a raise? Increase your 401k contribution as soon as you get it
You can make the change before you get used to your new pay, and protect your future self from lifestyle creep. For example, if you receive a 4% raise, you could increase your 401k contribution by 2% right way, and let the other 2% flow into your bank account. That way, your retirement gets a boost and so does your wallet.
3) Try A Retirement Calculator
Get more information. More information is power, and can also fuel motivation. Find out how you are tracking against your estimated financial needs in retirement. Try this calculator from Vanguard to get started. I think they have a lot of great financial literacy resources on their site, so I encourage you to explore.
4) Remember to live for today too
Mindful Money is all about balance. I have had coaching clients who were contributing the maximum allowed to their 401k, but were in credit card debt because they didn’t have enough cash coming in every month to support their needs. I coached them to lower their retirement contributions. The interest rate on their credit cards was higher than their expected rate of return in the market, and more importantly it was causing them stress and shame. It is important to find balance between preparing for later and also living a joyful present.
If you would like hands-on personal guidance about how to strategize saving for retirement, book a free consultation with me. I would love to help.