You can save more for retirement in 2019. How to make the most of it

Setting it and forgetting it can be one of the worst mistakes retirement savers can make for several reasons.

If you have been automatically enrolled in a retirement plan, chances are you are saving at a rate that is lower than what you would have chosen, according to Anne Lester, portfolio manager and global head of retirement solutions at J.P. Morgan Asset Management.

That’s because many employers will automatically enroll you at 3 percent or 6 percent, for example. But savers who elect their own savings rates will often choose bigger, more round numbers, such as 5 percent or 10 percent, Lester said.

More from Personal Finance:
How to make sure spending doesn’t trip up your New Year’s resolutions
Use ’em or lose ’em: How to make the most of all those gift cards
3 steps to keeping your resolutions to spend less, save more

Market fluctuations can also lead to your investments getting out of line with your savings goals. Check to make sure you’re not too exposed to equities, especially as you get closer to retirement, Murphy said. Also double-check that your investments match your risk tolerance for your age.

And finally, don’t forget to brush up on the fees you’re paying for your investments. Investments that are too expensive can undermine your efforts to build a strong financial foundation.

“The vast majority of people we talk to don’t understand the fees associated with the account,” Murphy said. “If you don’t understand, ask the question.”

Source link

Share with your friends!

Products You May Like

Leave a Reply

Your email address will not be published. Required fields are marked *

Get The Latest Investing Tips
Straight to your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.