At Kelly Community we teach that instead of having to work for your money…the money you invested should work for you! We help consumers save more, earn, more, and do more…financially!
Start saving early. You can benefit from decades of compounded growth, capture valuable employer contributions and save money on your tax bill all at the same time.
Get a 401(k) match. Getting an employer contribution is one of the fastest ways to grow your nest egg. The most common 401(k) match is 50 cents for each dollar saved up to 6 percent of pay.
Set up automatic withholding. A major perk of 401(k) accounts is that the money is withheld from your paycheck, and you never get a chance to spend it. If no 401(k) at work, consider direct deposit to an IRA individual retirement arrangement (account).
Reduce your tax bill. Contributing to a traditional 401(k) or IRA reduces your income tax bill. Income tax won’t be due until you withdraw money from the account.
Consider a Roth account. Roth 401(k)s and Roth IRAs allow you to pay income tax on your contributions at your current tax rate, this is beneficial to young and low-income savers.
Claim the saver’s credit. Investors with the lowest incomes are eligible for the biggest tax credit for their retirement saving.
Minimize fees. High investment fees can significantly erode your investment growth, especially over a 30-year career.
Avoid early withdrawals. Distributions from traditional 401(k)s and IRAs before age 59 1/2 typically trigger a 10 percent early withdrawal penalty.
Think of your future self. VISUALIZATION – Picture what your life might be like at 65. Save – Be debt free
Watch your savings compound. Beginning to save for retirement in your 20s gives your money the longest possible amount of time to grow.