Set a Goal: Save for Retirement
February 28, 2013
By Lila Quintiliani, AFC®
Military Saves Assistant Coordinator
Communication & Outreach
When there are bills to pay in the here and now it’s sometimes difficult to think about saving for retirement in the distant future. But the best time to think about retirement *is* the here and now: if you start saving when you are young, you will have time (and the benefits of compound interest) on your side. Remember, though, no matter what your age is, the best day to start is today! There are many different options out there, but the Thrift Savings Plan (TSP), the defined contribution retirement savings plan for federal employees, is a good place to start. Pledge to start or increase your savings for retirement.
Financial Action for today: Start participating in the Thrift Savings Plan. If you are already participating, increase your contribution by 1% in 2013.
The TSP has also added a Roth option to its offerings, so you will have to decide whether you want to pay taxes on your money before you contribute or when you withdraw it. You can also do a combination of both. Another great option beside or in addition to the employee contribution plan is to open a Traditional or Roth Individual Retirement Account (IRA).
Even if you cannot afford to contribute a large amount each month at first, the important thing is to get started.
Think you can’t find any extra money to save? Take the Military Saves Pledge. Then visit www.militarysaves.org for more tips, information and inspiration.
- Written by Super User
- Category: Blog
- Published: 28 February 2013