6. What is your income, assets, and debt?
Your 401(k) and Social Security payments are two retirement income sources, but you will have others, including your home and other assets. You need to also factor in how much debt you may have when you retire. Your funds must cover those payments, too. Fortunately, by the time you retire, you may already own your home free of debt or a small remaining mortgage. A study by the National Institutes of Health found that 55% of older adults owned their homes outright without any debt.
7. Consider speaking to a financial advisor
Retirement planning can be confusing. You don’t have to do it alone. A financial advisor can help you put all the pieces together and get you on target for a comfortable retirement.
8. Start contributing as early and as much as you can
It is never too early to start building your retirement savings, especially if your company offers a matching contribution. If your company offers a 401(k) plan, start contributing on day one of your employment. The earlier you start, the more your account will grow. For 2022, you can contribute a maximum of $20,500 into your 401(k) if you are under 50. If that is too much, pay in as much as you can.
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