A retirement fund is really important, especially in the US. You want to have enough money to support you in your golden years without having to work too much if you don’t want to. Hopefully, you will be able to save up enough during your working years to do this, but it’s never too late to start. Here are ways to quickly boost your retirement fund if you are a homeowner in Kansas City.
401k and Roth IRA
You may already have a 401k set up with your employer, but are you taking full advantage of the employer match program if it’s available? You definitely want to put as much as you can in your 401k to get the full benefit of free money! Every employer is different, but many of them will match your contributions up to a certain percent, such as they will match 100% of the first 3% you contribute. This is basically free money so always make sure to at least put this much in. This money is also taken out before taxes so you will save some money on taxes this way as well.
In addition to the 401k, you can have a Roth IRA account. Your money will be taxed now, but not later in retirement when it matters most. Make sure to max out your Roth IRA contributions to take advantage of this saving opportunity! Contributing the maximum allowed amount will quickly boost your retirement fund. If you are over 50, you are allowed to contribute a little more into your accounts, also referred to as “catch up” savings.
Pay Off Debt
Paying off outstanding debt is a great way to boost your retirement fund. Don’t make the mistake of only making the minimum payments on accounts. By just paying the minimum you are barely beating interest and will pay a lot more over the life of the loan. Making large lump payments to bring down your overall balance will save you thousands in the long run, and leave you more money to contribute to your retirement fund. It’s all about freeing up monthly “cash-flow” from your job or other investments. Once you pay off the loan, don’t spend all of that money. Ideally you will just save and invest that same money to really pour some gas on the investments.
Take on a Second Job
Another way to quickly boost your retirement fund is to take on a second job. Since your current job can cover all of the necessities now, your second job income can go straight to your retirement fund. You may lose some of your spare time, but just think of your retirement! You will have plenty of money and free time when you are older to take those vacations and travel. If you save up enough, you might even get to retire early!
Sell Your House
If you are a homeowner in Kansas City, the easiest and quickest way to boost your retirement fund with a big chunk of money is to sell your house! You may even be able to negotiate the buyer to pay closing costs for you.
Interest rates are currently super low so if you sell your home and downsize or buy a cheaper property, you will pay less every month to live. You can take the equity that you cashed out in the sale and the lower monthly payments to juice your investments. You will also save in some unexpected places, like the electric and water bill and the actual time it takes to clean your house. You might be able to find a smaller, more energy-efficient home closer to your work and save you time and gas money every day!