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FIVE Ways That May Reduce Stress When Saving for Retirement

July 12, 2021

FIVE Ways That May Reduce Stress When Saving for Retirement

Whether you regret not saving for retirement sooner or you wish you had more to set aside each year, it’s all too easy to get stressed when saving for retirement.

The good news is, it doesn’t have to be this way.

In fact, a few small shifts in behavior can go a long way to calm nerves and take you from a stressed mess to feeling empowered about your financial future. Keep reading for 5 ways to reduce stress when saving for retirement. Or, contact your certified financial planner, Paul Kalra, at Signature America Wealth Management, Lake Forest, California, to discuss your retirement plans.

#1 Have a Retirement Plan in Place 

Too many investors invest money every month in their retirement plan, forget about it, and hope they have enough money for retirement. The trouble with this is, hope is not a strategy.

If you don’t have a clear path to where you want to be in retirement, you’re probably not going to end up there.

This may sound obvious, but many people fail to set a plan for retirement. And failure to plan is often a stressor when it comes to saving for retirement.

With rising healthcare costs, inflation, taxes, down markets, and the financial strain this virus has put on all of us, one thing is certain…

If you don’t have a plan and take action on that plan now, you’re likely not going to have enough to retire.

Here’s what you can do today to get a plan in place…

Take the time now to create a plan for retirement. If you created a plan years ago, but haven’t followed it, then hit the reset button and start planning.

Ask yourself at what age you want to retire. How much money will you need to create the income you’ll need in retirement? Write it down.

If you get stuck or are unclear, reach out to a professional for help sooner rather than later.

#2 Focus on the Future, Not the Past

If you haven’t been able to save for retirement as planned, don’t beat yourself up. Instead, focus on what you can do today to get back on track.

If you’re unable to contribute the maximum $19,500 to your 401(k) or $6,000 to your IRA, do what you can to save for the future. Every little bit helps come retirement.

If you have a 401(k), at least put in enough to get the full company match because it’s like getting free money.

#3 Regularly Review Your Investment Statements

If you trash or dump your investment statements when they come in the mail, you aren’t alone.

Here are 3 reasons you want to make it a point to open and read your statements:

1. See how your 401(k) or IRA is performing.
2. Understand what you are paying in fees.
3. This is the part of your retirement that you control.

#4 Get Engaged and Educate Yourself

If you are stressed about saving for retirement, one of the best things you can do to empower yourself is to get engaged with your retirement investments.

The more informed you are about what you’re actually investing in, the better decisions you can make for your financial future.

#5 Seek Third-Party Expert Guidance

A May 2014 study conducted over a 6-year period compared those who had help with managing their 401(k)'s and those who did not. The study revealed…

“On average, the median annual returns for participants in the study who got Help were more than 3% (332 basis points, net of fees) higher than people who didn’t get Help.”

A third-party expert can help you create a plan to get out of debt, fund your emergency account, and maximize your retirement savings.

For more information CLICK HERE to schedule a FREE 15 Minute CONSULTATION!