You may not know right now but a retirement fund is an extremely important thing to have. When you are old and about to retire, the only thing that you want is to rest and live comfortably without worrying about the money. Well, you hopefully had enough savings during your working days to do this. If you didn’t, then don’t worry, it’s not too late to start. Here are 4 Ways to Boost Your Retirement If You’re a Homeowner in Los Angeles
Pay Off Debt
The very first thing that you need to do: pay off your debt. This is a great way to start and would be a big help to boost your retirement fund. A lot of people make the mistake of paying just the minimum on accounts. If you do that, you’ll never get rid of that debt, and instead, the interest and fees will only get bigger and bigger until you can’t handle it anymore. Paying a large lump of money right now will bring down your principal balance, and it will eventually save you money in the long run. This means more money that you can contribute to your retirement plan! Bonus: it’ll fix your credit score, too.
401k and Roth IRA
Are you taking advantage of the full benefits your employer has given you? Say, for example, the employer match program if it’s available or if you have set it up the 401K. You’d want to put money as much as you can in your 401K to fully enjoy the benefit of free money. There are some employers that can match 100 percent and make deposits even if you do not but there are some that can only match 50 percent of contributions, or in some other cases, up to a certain amount. This will help you save additional paycheck taxes! 401K is taken out of your check before taxes.
Aside from the 401k, you can have a Roth IRA account. Keep in mind that your money will be taxed now but not later in retirement when it actually matters most. Take advantage of this saving opportunity by maxing out your Roth IRA contributions. Giving out the maximum allowed amount will quickly boost your retirement fund! If you are over 50, you are allowed to do a “catch up savings” – in other words, you can contribute more to your accounts.
Take on a Second Job
Take on a second job! This may sound more like nay than yay but this is also another way to boost your retirement fund. Your current job should take care of all your necessities expenses, now your second job income should go straight to your retirement fund. Yes, you might lose some of your spare time, but think about your future. You’ll have plenty of time and money when you are older – then you can take those vacation and travel the world. If you save enough money, you might be able to retire early.
Sell Your House
Now, this is the easiest and fastest way to boost your retirement. Sell your house for cash, get a huge chunk of money, and put it on your retirement. You may also be able to convince the buyer and have them pay for all the fees. This way, you can have more money to put aside. Take into consideration that you can downsize now and then save for the future! You can also take advantage of the low-interest rates when you are trying to find a loan for your new house. You can save a lot of money away and start earning interest and look for a different house to live in. This way you can save a lot of money on lower interest rates. You’ll also save on some unexpected places. Examples are the electric bill and water. You can find a smaller but energy-efficient home closer to your workplace. It will eventually save you time and gas money!