Ready to retire?

By ALANA LISTOE

Montana Credit Union Network

Life’s curveballs can put future financial goals on the back burner. A career change, a new baby, or an unanticipated move can change your focus, but it’s important for you to regain momentum if you want to be able to retire. .

If challenges have undermined your efforts, it’s important to get back on track as soon as possible. Professional financial advisors say it’s easy to allow other priorities to crowd our retirement, and while this is part of money management it shouldn’t be an excuse for a lapse in retirement saving.

One of the easiest ways to set aside money for your post-work life is to contribute to an employer’s 401K. Assuming it’s an option, 10 to 15 percent is a good general contribution percentage to aim for; but at the very least, contribute enough to meet the match required by your employers. This money is invested before it’s taxed.

Don’t fall prey to some of the more prevalent incorrect assumptions when it comes to retirement. Some think that buying a home is a good main source of retirement savings, but this has significant risks especially if the house doesn’t appreciate. Parents believe they should pay for their children’s college, and while that may be true to some degree, saving for retirement should be ahead of saving for kids’ college.

Financial institutions are great resources for retirement advice. The bottom line is that getting started today is paramount, no matter what chapter of life you are in. By age 50, it’s time to start catching those retirement accounts up to where they need to be, if they’re not there already. That figure can be determined using a retirement calculator provided by a number of investment firms, online websites, and credit unions.

A sound retirement plan provides freedom to choose how your time is spent. While retirement may seem like a lifetime away for many, the sooner there’s a plan in place and action begins, the more comfortable and independent you will feel. Throughout this month, Montana’s credit unions take a closer look at different retirement and investment plans and post updates, tips, and a list of resources at www.montanacreditunions.coop