Have you thought about your nest egg? No, we’re not talking about birds! We’re talking about the money you’ve set aside for your retirement fund. In 2019, we had the pleasure of talking about retirement in a previous post as well as hosting an entire Get Ready to Retire event with Primerica! Missed out? No worries, you’ll have more opportunities in the future! In the meantime, today we talk about the nest egg, how you can get started, and where to save your funds.
Let’s start with the definition. A nest egg is a lump sum of money that you put aside during your working years in order to enjoy once retired. For many, retirement seems like a long way off, but it’s closer than you think! In fact, less than half of the Baby Boomer generation is more than $10,000 saved for retirement according to Dave Ramsey Solutions. Depending on your lifestyle choices and desires, how much you need in your nest egg really depends on you.
Trying to save for retirement? Begin with the present. Create a strict budget and (this is the hard part) stick to it. Be aggressive with your saving while you’re young, so you can enjoy the magic of compounding as time goes on. In your budget, set aside a paycheck percentage to your nest egg. Even better: set up an automatic deposit for it! As time goes on, you’ll see the numbers add up, and you’ll also witness how powerful compounding can be. It’s better to save regularly when young and let it compound than try to save large lump sums later in life.
Like all things in personal finance, your nest egg choices are ultimately up to you. We recommend you talk with a financial advisor (we have a few great recommendations here) to plan the best way to save for your nest egg. There is more than one way, and your financial portfolio will thank you later if you invest well early. Your financial advisor can help you find bonds, savings accounts, and other investments that can help you save easily and happily.
It’s never too early to start thinking about retirement, and you’ll be glad you started early! Questions about your nest egg? Contact us at www.practicalaccountingva.com !
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