Is It Time to Maximize Your 401k and Roth IRA?
You may already have a 401k set up with your employer, but are you taking full advantage of the employer match program if it’s available? You definitely want to put as much as you can in your 401k to get the full benefit of free money! Some employers match 50% of contributions up to a certain amount, and some may match 100% or make deposits even if you don’t! This will also save you additional paycheck taxes since the 401k funds are taken out of your check before taxes.
There are almost an infinite number of retirement planning resources online these days. It can be easy to overwhelm yourself if this is a new topic for you. But as a place to start here are a few helpful links by well-respected companies:
Fidelity Investments: Fidelity provides some easy-to-use retirement calculators.
In addition to the 401k, you can have a Roth IRA account. Your money will be taxed now, but not later in retirement when it matters most. Make sure to max out your Roth IRA contributions to take advantage of this saving opportunity! Contributing the maximum allowed amount will quickly boost your retirement fund. If you are over 50, you are allowed to contribute a little more into your accounts, also referred to as “catch up” savings.
Should You Pay Off Your Debts?
You want to reduce the outstanding debt while you are still earning. In particular, if you carry a credit card balance over from month to month—you should stop! Plain and simple—this is draining your finances. Most credit cards charge you anywhere between 15% and 21% on those balances. This makes saving very difficult when such a significant amount of cash goes to finance charges every month. Paying off outstanding debt is a great way to boost your retirement fund.
Don’t make the mistake of only making the minimum payments on accounts. This will surely be eaten up by interest and fees and will slowly be applied to your principal balances. Making large lump payments to bring down your overall balance will save you thousands in the long run, and leave you more money to contribute to your retirement fund. Once you have your balances paid off, commit to paying off the entire balance every month. Not only will this save you money, but this will also surely improve your credit score!
Can You Earn More With a Second Job?
Although it may not be the most popular choice, another way to quickly boost your retirement fund is to take on a second job. The idea here would be to put all the income from this second job directly into your retirement savings because your current job covers all of the essential monthly expenses necessities now. You may lose some of your spare time, but perhaps you can remain motivated by the thoughts of greatly expanded freedom of choice in your retirement days! You could have plenty of money and free time when you are older to take those vacations and travel. If you save up enough, you might even get to retire early!
Sell Your House Now To Cash In Your Equity
The absolute quickest way to boost your retirement fund with a huge chunk of money is to sell your house if you are a Massachusetts property owner. It is time to run some numbers with your loved ones and take a serious, well-informed look at your retirement prospects. Take into consideration downsizing your living quarters now to save for your future.
In addition, right now you can take advantage of the ultra-low interest rates when you are looking for a loan for your new, less-expensive house. You just might be able to put thousands of dollars away to start earning interest now and find a different house to live in, and save extra money by lowering your mortgage payment and the interest you pay on that loan.
Downsizing to a smaller home will also save money in some other unexpected places, like the electric and water bills, property taxes, and homeowners’ insurance. As another great bonus, the actual time it takes to clean your house will be less as wee—freeing up a bit of your time right away. You might be able to find a smaller, more energy-efficient home closer to your work and save you time and gas money every day!
Selling your house fast in Massachusetts right now just may be the best and fastest way to give your retirement plans a huge boost by cashing in on the equity you’ve spent years accumulating. Summit Buys Houses would love to have a discussion with you about these possibilities. We’ll give you an accurate and up-to-date assessment of your Massachusetts property’s value, and can show you exactly how much cash you’d receive when you sell your house.
We have purchased Massachusetts houses for cash for years now, and we have many satisfied customers throughout the state. Why not schedule some time to speak with us? It’s completely free of charge and we never pressure you to make any decisions before you are ready. We look forward to speaking with you soon!
Call Summit Buys Houses at (978) 254-3800 or send us a message to discuss how to quickly boost your retirement fund if you are a homeowner in Lowell.
“Summit Buys Houses” is an experienced LLC incorporated as Summit RE Group LLC. We buy property all over Massachusetts in towns such as Tewksbury, Ayer, Fitchburg, Andover, Billerica, Malden and Westford to name just a few. Contact us for a quick and confidential, no obligation cash offer and the best, no-pressure advice if you’re interested in selling your home anywhere in the Middlesex, Essex and Worcester counties of Massachusetts. Thank you-we hope to meet you soon!