A retirement savings fund is an important thing to have. But more often than not, people tend to delay setting one up. Some would think that it won't be needed in their 20s, while some forget its importance. But it doesn't matter what age you are or your career - everyone should start saving up for retirement as soon as possible.
Real Estate agents aren't exempt from this at all. Now that the industry is booming and income is flowing, it is the best time to start that retirement fund. Here are four steps on how you can start saving now:
Savings Percentage
Every month, you should be taking out a set percentage from your income into your retirement fund. The standard portion is 20%. But of course, you have to gauge your monthly income first alongside your monthly expenses. Even if you put fifty dollars away each month - it's better than nothing.
Once you have that figured out, you can set a percentage that you can commit every month to saving for your future.
Budget Tracker
After setting aside your savings, the amount of money left in your salary is your budget. Keeping track of your budget is more than half the battle - not just setting one. Prepare a list of wants and needs. Begin by noting the usual bills and daily expenses, then add the other costs.
Tracking one's budget really is the most important step of any financial plan because it's easy to plan but hard to execute.
Make an Investment
Make wise investments with the money you saved up. This could be in stocks, bonds, or mutual funds. You can also invest in property, but make sure that the property is generating income.
Doing this will help your money grow, and you won't have to worry about it when you retire.
Get an IRA
IRA is a savings account with tax advantages. Setting one up can be done in such a way that it's automatically debited whenever your salary comes through, making sure there are funds for future needs!
There are different types of IRA, such as Solo401K, Simple IRA, Roth IRA, and Traditional IRA. All of these have tax advantages, such as deductions or tax-free transactions. Which type should you be getting? It is also best to have a financial consultant on this to get the type that is fit with your monthly or yearly income.
Final Thoughts
Real Estate agents need to be saving up for retirement funds right now. The industry is booming, and the demand for properties is rising. This is a great advantage for them to step up and close that deal.
Whenever one closes a deal, that means income. And there are a lot of income opportunities nowadays, and grabbing that can mean that a big percentage of that will go to their retirement funds. Earning isn't enough, though - there should be discipline too in setting aside your committed percentage of savings and sticking to your budget trackers. Lastly, it is great to open up an IRA and also look into investing in properties for future passive income benefits.
Real estate agents typically work for themselves and set their own hours and workday flow - this is a huge perk. But, that comes with the responsibility of setting yourself up for retirement. Don't wait and be forced to work into old age or nickel and dime once you've "retired" - start to save today.
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