Whether you’re a couple of years away from retirement or decades away, financially planning for this period of your life can seem overwhelming. But by following some key advice, you could be well on your way to thriving during your golden years.
GOBankingRates spoke with top money experts, including Dave Ramsey and Fox Business’ Charles Payne, to get their best retirement advice — here’s what they had to say.
Sacrifices Now Will Pay Off Big Later
Charles Payne, host of Fox Business’ “Making Money With Charles Payne,” said to cut back on spending now to be better prepared financially when you reach retirement.
“Find ways to let your money work for you,” he said. “It requires sacrifice and knowledge. Life is long, life is short. It’s very long and difficult when you are older and have trouble paying basic bills. The big thing about getting caught up in YOLO and FOMO is the fun you have now could be multiplied by many factors. Today’s trip on a tight budget to a local island could be tomorrow’s cruise around the world.”
Know How To Prioritize Where You Put Your Money
When it comes to saving for retirement, you have numerous options for where to put your funds. Dave Ramsey, author and host of “The Ramsey Show,” recommends maxing out your 401(k) before funding an IRA.
“Remember, [company] match beats Roth [IRA] beats traditional [IRA] when figuring out where to invest for retirement first,” he said.
Start Saving ASAP
Richard Coffin, host of The Plain Bagel YouTube channel, said that he wishes all of his viewers would understand the importance of saving and investing for retirement, and starting early.
“Most people wait until later on in their career to start planning, with some, unfortunately, realizing too late that they won’t be able to fund the retirement they were hoping for,” he said. “Starting early is not only a great way to establish a productive habit, but it gives you a longer time horizon over which you can compound your savings for building that nest egg.
“This greatly reduces the overall burden of saving for retirement,” he continued. “For a given savings goal, regularly contributing to a 6% returning-investment over a 40-year period, compared to 20 years, cuts the total amount of money you’ll need to put aside by more than half.”
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This article originally appeared on GOBankingRates.com: The Best Retirement Advice From Dave Ramsey, Charles Payne & More
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