When to Start Saving for Retirement
Everyone says to begin saving for retirement as soon as possible, but is that always true?
Know the Right Time for You
The “best time” to save isn’t the same for everyone. Some may begin when they’re still in school, and others may not find themselves in a position to save until they’re much older. It can also depend on your job security or current debts you need to eliminate.
Take heart that you’re not behind the curve. It’s best to start saving when you can, not when others say you should – as this could put you into debt, which does more harm than good.
Set aside time to properly evaluating your income, your current savings, and if additional money can be safely put away. While sooner is always better, that’s only true if you can afford it.
Watch the Stock Market
When investing retirement funds in stocks, it may be best to wait for a good deal, rather than jumping in head-first once you finally have the money to invest.
Follow the history of the companies you’re interested in and check for periods of low prices. Some companies go through regular drops at the ends or starts of fiscal quarters. If that’s the case, wait until then to purchase any stocks.
While you can set up a “buy” option for a particular price, it may surprise you how low a stock may go. You can then buy stock for a lower price, even if it’s just a few cents cheaper.
However, if you’re buying smaller stock amounts, around ten or so, this kind of savings won’t be as important as having an automated procedure to save you time (and hassle, depending on what time zone you live in).
Keep Up on International News
There will always be national and international trends in stocks, depending on the global economy. Keeping up with the news to determine if it’s a good time to buy stocks from a certain kind of business can save you a great deal of money.
For example, you may not want to purchase stocks in a company that is dependent on shipping their products by sea – especially if there is a rise in piracy or if the cost of shipping by sea has risen because of a massive decline in ship production.
As such, spare time to evaluate the global market. This doesn’t mean becoming a professional stock trader – but simply doing your research before cashing in on a supposedly good deal.