Retirement might seem like a distant reality when you are in your 30s, but that doesn’t mean you shouldn’t plan for it at all. In fact, your 30s might be the best time in life for you to set yourself up for a safe and secure future. Learn how to plan for retirement in your 30s with some of these tips.
First things first, if you don’t have anything saved for your retirement, then it’s time to get started. This means opening the best account for you, whether it’s one you get through the company you work for or a solo 401(k) plan if you are self-employed.
Seek Professional Advice
You might not know where to start in terms of investing, which is why you should seek professional help. By making this move, you’ll have someone who can make the best investments for you. You can also learn a fair amount from a financial advisor as well so that you could eventually go off on your own with investments.
Refine Your Financial Goals
Your 30s are when a lot of life changes are bound to happen, whether you get married, have a child, or get a new job. Because of these potential changes, you are going to want to redefine your financial goals and make sure you are in a good spot once retirement inches closer.
Diversify Your Investments
A common mistake people make when they invest is to put all their money into one company. A much smarter option is to diversify as much as you can to reduce the amount of risk. To do this, you’ll need enough money to make multiple investments and use index and exchange-traded funds.
The last tip on how to plan for retirement in your 30s is to contribute more money. When you are in your 30s, you are usually reaching your peak earning, so take advantage of that notion, and consider opening another retirement savings fund or increase how much you’re contributing so that you can reach your goal.