Maximized
Company Savings Plans
The first and most
important step in securing your retirement future is to maximize any company
matching savings plans that may be available to you, as well as to fully
utilize available tax benefits and deductions for 401(k) and IRA
contributions. Never leave any money on the table; it’s normally better to
defer taxes then to prepay them. The Roth accounts may be the exception.
There is a lot to be said for having your retirement assets free and clear
of taxes.
By maximizing your
401(k) or IRA contributions from the very beginning of your working career,
your spending habits will develop around your net pay. Many young adults,
who start saving for retirement with their first paycheck, may not feel
their contributions, and their retirement savings may go into an automatic
mode.
