Tips To Start Your Investing Journey

I know it feels like everyone’s ahead of you, but the National Institute on Retirement Security’s 2021 study says 56% of Americans don’t think they’ll be financially secure in retirement. So, know that you’re not alone, I’m going to tell you how to plan and not panic:

Start by seeing how far behind you are, then evaluate your budget, cut expenses where you can and automate contributions to your retirement account.

*Which retirement accounts should I put money in Rianka?* Try maxing out your 401(k) if you can afford to–the max is $20,500 for 2022 and $27,000 if you’re over 50. If you can’t afford that, at least contribute enough to get an employee match if your company offers one

Next, max out your IRA: you can contribute $6,000 in 2022 and a stack $1,000 extra if you’re 50+

If you have a good nest egg saved up, and within 5 years of retirement, consider shifting your portfolio to less risky investments. You can do this and still keep your benjamins in the stock market and get potential returns.

Last tip – if after budgeting, you don’t feel you have enough to put towards retirement, think of getting a side hustle. You can dedicate that money to funding the accounts I mentioned earlier.

It’s never too late to start investing–you just have to come up with a strategy for where you are! If you’re stuck like chuck on how to get caught up, talk to a Certified Financial Planner – remember, personal finances are personal.

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