8 Pre-Retirement Tips for Your 30s
Estimated reading time: 3 minutes
As we continue building awareness for Save For Retirement 2015, it's important that we discuss different stages in life, and how we can always make a move towards a bigger goal for saving funds for the future. Additionally, we are all at different junctures in our life journey and we each have unique dreams and long-term goals. From the newest homeowner on the block to the couple planning their exit strategy for their business, it is important to keep your future secure and well planned out. As you journey through life, consider these retirement goals to keep you on track and ready for your golden horizon.
Life In Your 30s:
Your 30s is the time to expand upon the financial foundation which you established in your previous decade. By now you can appreciate that this is a time to develop your long-term goals, and you are recognizing the importance of financial management. At this phase in your life, consider the following:
1. Assess and update your budget
Since you are most likely bringing in more income, and you have possibly accumulated more debt. Your 30s are the time to make your financial stability a priority. Whenever your income adjusts (with the addition of a new family member, the purchase of a home, a raise at work, or a job move), make similar adjustments for budgeting your retirement funds. Think of contributions not as a set amount (such as $100 a month) but in terms of a percentage of your income. By doing so, the designated percentage can then expand and retract along with your life events. And, as within your 20s, frugality with your funds is beneficial!
2. Work on calculating the interest
This can be done on your revolving credit. Best practices include comparing your credit to the amount accrued with a savings account as an incentive.
3. Consult a financial advisor
Educating yourself on retirement planning is one of the most helpful ways to plan for your financial future.
4. Make paying off your credit debt a priority
There are many theories about how to do this: from “debt snowballing” to paying down cards with the highest limits. Let's not forget, in return, you're boosting your credit score at the same time. Whichever route you choose, make paying off your debt of high importance.
5. Pay off your student loans
If you are in your 30s and are paying the minimum on your student loan debt, you should take a closer look at where you stand in comparison to your peers. The Pew Research Center released a report showing how young student debtors significantly lag behind in wealth accumulation. On average, having a college education and zero student debt places a household net worth at seven times greater than those with student debt. As you can see, being college-educated and having student debt does not do your overall financial stability any favors!
7. If you haven’t yet opened an IRA, consider doing so
It is to your advantage to have additional savings outside of the program offered by your place of employment in order to maximize yearly contribution limits. After opening an IRA, focus on making your annual maximum contributions and then invest wisely. If you currently have an IRA, avoid early withdrawals which are subject to an early-distribution penalty.
8. Build into an emergency fund
As the Greek philosopher Thales said, “The past is certain, the future obscure.”
The future truly holds a limitless amount of possibilities, so be prepared with a financial buffer when the inevitable bumps come along in the road.
As you can see, retirement considerations and savings are crucial at each stage in your life. Continue educating yourself by reading articles on retirement planning through a self-directed IRA in The Entrust Group Learning Center. For further information on IRA plans, visit our Self-Directed Plans for Individuals page.
Visit our Learning Center to read about each stage’s retirement goals, starting from the 20s and going into your post-retirement years. And of course, feel free to share this article with someone you know who might benefit.