IRON MOUNTAIN -- Everyone has monetary goals. Whether it's saving for retirement, trying to get that new car, or just climbing out of debt, some simple tips can start you down the right path.
It's never too early to start planning for the future. Every little bit of money you save will help you in the long run.
“It used to be if you could save 10 percent, that's a good starting point,” said financial planner Russell Game. “And I'd say today that's a minimum. If you can ratchet it up somehow to 20 percent and still eat, that's a good thing."
Saving money in an FDIC-insured account is a great way to save money without any risk. However, if you're not opposed to some risk, investing your money is also an effective way to build wealth. Game says the key to investing is to invest in different places.
“One segment of the market, real estate could be doing really well or really poorly, as it currently is, and then another segment may be doing the exact opposite,” Game said. “And if you have that in your entire portfolio overall, potentially, you're portfolio is going to grow.”
As far as retirement accounts go, Roth IRAs are a good option for younger savers, while regular IRAs are better for older savers. Roth IRAs have no taxes on the gains they make. However, regular IRAs allow you to deduct your contributions from your current taxes. Both allow you to contribute money to them tax-free. So choose the one that's best for your situation.
“If I have a goal of starting putting some money in at age 40 or 42, it will accumulate to a larger amount at retirement,” Game says.
The biggest thing is to save early and to save often. The earlier you start saving money, the easier things are going to be when you finally retire.
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