People often get scared or disappointed with the thought of retirement savings. Here are some ways that have been introduced by www.bestsavingtips.org to help its users successfully save for retirement easily.

There is no second thought about the need and importance of saving for your retirement. However it seems a real difficult task for most people as they are not able to comprehend retirement which seems years away, maybe 20, 30 or even 40 years away. However the distant future suddenly does not seem that distant at all and when people start calculating how much they would need, they get real worried. And if the savings were not there anymore then the amount that one may need to put together may even be more than what the monthly earning is and the situation can be really frustrating.

Therefore, one must start saving now, and if following a simple process and a bit of self discipline, this can be quite possible and the situation can be altered. There should be a plan to save that gets followed and implemented. Here are some of the ways the plan gets followed:

1.401K implementation- One should contribute up to the match of the employer’s contribution into the 401K plan. This will earn another contribution from the employer which is a good savings. All one needs to do is fill up a form and pledge the monthly savings and the deduction is hardly noticeable.
2.IRA – One can open an IRA account and make monthly contribution of up to $ 6000 per annum (for citizens above 50). The ideal way is to make a monthly contribution of $415 or $ 500. This helps to get the maximum benefit out of the Roth IRA. It is a quick way to make investments for retirement purposes, and the returns are tax free too. Though this may look like a steep contribution but if one looks at the amount of money one needs to spend a comfortable life after retirement and if one retires around 65, the life expectancy is around 20 years which means the person would need a decent amount of money for the next 20 years. Hence the contribution is hardly that much.
3.Have an incremental savings plan: Each year the retirement kitty should increase by at least 1 %. A lot of firms can allow employees to increase the 401 (K) contribution to 4% and then to 5%. This can be opted at the signing up stage itself. Otherwise this can be done at the time of salary increments. Therefore once the increases come about, then contributions can be increased accordingly. For maximizing the savings fund one need to contribute the maximum possible amount to the Roth IRA and then increase the other contributions.

One can start with small baby steps by increasing the Roth IRA contribution by $ 20-25 each month and annually too. After someone reaches the maximum level possible then should increase the 401 (K). This kind of a savings plan will not pinch a lot while systematically increasing the retirement kitty to a decent amount. A good plan and some bit of commitment is all that will be required to complete this difficult task and one will be able to save for retirement without giving up the present happiness.

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