There’s no better time than today to revisit your retirement savings plan and learn how you can stay on track as you approach retirement.
When it comes to paying off a house or a car, most of us know exactly where we stand. Monthly statements show our outstanding balances and how many payments remain. Saving for retirement, however, can be a little trickier. Because we don't know how long retirement will last, we're planning for financial needs that are unknown.
The good news is that in your 40s you could be nearing your peak earning potential. That's why it may be an ideal time to look more closely at your retirement goals and, if needed, start saving more. To keep your retirement savings on track, start (or continue) reviewing your retirement accounts such as Individual Retirement Accounts (IRAs) and savings goals at least annually.
Give your retirement savings a boost
If you're saving today for multiple goals down the road, such as a child's education, moving to a larger house, and your own retirement, try setting a monthly savings target for each. And to help you keep your retirement savings goals in focus while you're juggling these various priorities, consider some useful tools and strategies:
- Crunch the numbers. To develop a clear strategy for retirement savings, try My Retirement Plan® . This online tool from Wells Fargo can help you estimate how much money you might need in the future and how much you'll need to save today to get there.
- Learn more about a Roth IRA. If most of your current retirement savings are in tax-deferred accounts, such as a 401(k) plan or a Traditional IRA, consider adding a Roth IRA to your overall retirement strategy. Contributions to a Roth IRA aren't tax deductible, but qualified withdrawals are tax-free in retirement, so owning a Roth IRA can give you a tax-free bucket for retirement income.
- Max out your employer plan. If you have a retirement plan at work, try to contribute the maximum amount allowed in your plan — or at least up to the employer match.
Consider talking to a professional
A Wells Fargo retirement professional can help you further customize your plan to meet your individual needs, while answering any questions you may have about saving and investing. You can also get help developing practical strategies for working toward several important goals simultaneously, such as retirement and saving for college.