The 3 Golden Rules of Retiring Early

Retiring on time seems impossible in today’s world, but it is achievable. All it takes is a good plan and a disciplined approach. Follow these three golden rules from the pros at American Investment Planners, LLC and you will be on the fast track to retirement in no time…

Rule #1: Start early.

The earlier you start saving for retirement, the earlier you will reach your goal. Many people procrastinate opening their retirement accounts because they feel they don’t have enough money to make a significant impact. The truth is, the amount of capital you start with is not nearly as important as when you start. Take the scenario in this article, for example: Ashley is able to save more money than Bill, despite contributing less than half as much, because she started saving ten years earlier.

Rule #2: Take advantage of your 401(k) match.

A 401(k) is a special type of employer-sponsored retirement plan that is funded through pre-tax deductions from your paycheck. What makes the 401(k) so great is that many employers offer a company match: meaning they will match your contributions penny for penny, up to a certain percentage of your salary. At the very least, you should be contributing enough to your 401(k) to maximize your employer match – anything less is essentially giving up free money.

Rule #3: Maximize your contributions.

The IRS sets limits on how much money you can contribute to your retirement accounts annually. If you can afford to, max out these contributions each year. The more money you save now, the more money you will have later, and the difference is exponential. The current 2017 contribution limits are:

• Traditional and Roth IRA: $5,500 per year
• 401(k) and 403(b): $18,000 per year

Ready to start planning for retirement? Let us help. The financial advisors at American Investment Planners, LLC have been helping individuals plan and achieve their retirement goals for more than 30 years.

To schedule an appointment with one of our consultants, please call (516) 932-5130 or email info@americaninvestmentplanners.com.