Creating a long-term, successful career is about more than just getting the perfect job – it’s also about managing your personal finances. At GetFive, we’re big believers in planning ahead for long term success, and one of the most important parts of that is building a retirement fund and 401(k). This may seem like a mysterious topic to you, but we’ve got you covered – here are our tips on making the most of your 401(k) no matter what your age.
Start Small, but Start Now
Unfortunately, retirement savings are often put off – after all, you’ve got plenty of time before then, right? But the key is to start now, even if that means starting small. Saving just 3% of your income may not seem like much, but it can make a big difference down the road. Once you’ve started, the key is to auto-escalate. The increasing contributions won’t feel like much, but they’ll make a huge difference when it comes time to use the funds.
Leave It to the Pros
You’re a busy professional, and you may not have time to think about how to invest your retirement fund – so don’t! Choose a target-date fund, which will automatically adjust your portfolio as you age closer to retirement. This ensures your money will keep growing, leaving you free to focus on your career.
Don’t Be Afraid to Keep Savings Flexible
While we all wish we could save 20% of our income every single year, the reality is that life changes, and our financial plans have to change with it. Don’t worry about being flexible with saving. In times when you have a stable, well-paying job with matched employer contributions, it’s a great idea to really put in the savings, but it’s O.K. to let your savings dip while you’re paying for a graduate degree or putting your kids through college.
Contact Your Career Coaching Experts
Have more questions about retirement or ready to start planning for your own? We can help with that. Feel free to learn more about our membership benefits, check out our Career Insider Program. We hope to see you back at this blog for more tips and information on building a successful long-term career.