Planning ahead isn’t everyone’s cup of tea. It can be stressful to think about the future and then take the necessary steps to see the plan through. It can be especially stressful when it’s not a topic you’re passionate about, let’s say saving money or retirement for example. Since I’m all about some planning, I put together a list of four stress-free ways to save for your retirement. These should make your retirement planning process a little easier.
Take 10 minutes to make your money go into your retirement account automatically—it will be time well spent. Whether it’s a 401k or an IRA, make the money move without giving it another thought. If you’re investing money in your 401k, it’s an added bonus if you get an employer match every time your cash gets put in automatically.
Make it Increase
As your income increases, so should the amount you save for retirement. If possible set up your increase to happen automatically as well. When that isn’t an option, set a reminder in your calendar to make the necessary increase manually.
Pick a Fund
Unless you have the passion for stock picking or paying extra for an actively managed fund, you’ll what to find an index fund to invest your retirement cash. Start by looking at what’s available to you in your 401k by checking with HR or if you have an IRA, find out more from the company where you established your IRA.
If you’re looking for something even more low stress, look into Target Date Funds. If you’re in the military or government work, they’re known as Lifecycle Funds. Target and Lifecycle funds base your investments on your time horizon, a.k.a when you plan on retiring. As you get older and closer to retirement, your allocation is adjusted automatically to reduce risk. It’s like autopilot for your retirement account.
Last but not least, do it! Don’t over think it just get online or make a phone call to get everything set up. Once you’re done, it’s done. Your retirement planning will be less stressful because it will be working in the background while your sleeping or spending time with family.