When to Set Up a Retirement Fund

Published on March 29th, 2018

In our eyes, it’s never too early to be thinking about your financial stability down the road. Although we gladly provide some of the best fast cash loans in Chicago, we wanted to also address setting up a retirement plan that will serve you well in your future.

It’s Never Too Early

As soon as you start making money, you should consider creating a retirement fund for yourself. This may sound extreme, but the sooner you start contributing, the less money you’ll need to contribute because of compounding. It allows you to earn more money on the money you invest given you reinvest your earnings on that money.

If your employer offers a retirement plan, take advantage of that as soon as you can. This is essentially free money! If you’re self-employed with no savings option, use a traditional IRA or even consider a Roth IRA. Most importantly, develop a vision of how you want to live in the future.

The Independent 401K is a great option for those who are self-employed but want to start saving money. With this plan, you can contribute money as both the employee and the employer. You can also use your spouse as your employee as well.

Pay Yourself First

This means putting money towards your savings accounts right away. If you don’t do this and only contribute what you have leftover, you’ll likely allocate very little each month. Simple steps such as cutting out trips to your favorite coffee shop or bringing your lunch will quickly add up, especially thanks to compounding.

Short Term Loans Can Help

As providers of the best fast cash loan, we understand that situations come up when you need money in a crunch. But if you’re saving your money and planning your retirement starting at an early age, it will serve you well as you get older. If you have questions about starting your retirement plan, contact us today!

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