How to Max Out Your Retirement Plan Contributions
Posted: October 12, 2012 at 11:19 pm
One of the best things you can do for your retirement is to max out your retirement plan contributions. Two of the factors that can have a big impact on how much money you end up with during retirement are when you start saving (it's best to start as early as you can), and how much you actually contribute.
For most of us, contributing $100 a month just isn't going to cut it in retirement. Instead, consider maxing out your retirement plan contributions. At the very least, try to max out an IRA each year. Here are some strategies you can employ to help you max out the contributions you make to at least one of your retirement plans:
Take advantage of the employer match. If you have an employer match, you should be taking advantage of it. Find out what you need to contribute in order to receive the maximum matching contribution, and then add that money to your account each month. If your employer is offering a match, that is free money that you can use to boost your retirement account contributions. Remember, the more you put in now, the better compound interest can work on your behalf to build wealth for later.
Slowly increase your contributions. Gradually increase your retirement account contributions. You don't have to suddenly go from contributing $100 a month to contributing $500 or $1,000 a month. Instead, step up your contributions slowly. Look for an extra amount of money to regularly apply to your retirement contributions.
If you think that you can find $50 more a month to save for retirement, add that to your contributions. This should be a regular contribution that permanently raises the amount of your deposits. After a few months, when you are comfortable, look for another $50 or $100 a month that you can contribute to your retirement account. Step up your contributions regularly until you reach your goal of maxing out your retirement account each month.
Add windfalls to your retirement account. If you receive an unexpected windfall, add it to your retirement account. Whether this is a one-time bonus, lottery winnings, or a raise, consider adding money to your retirement account. This will help you move toward maxing out your retirement account--at least this year.
If you end up with a raise, immediately appropriate a good portion of that raise to your retirement account contributions. Do this as quickly as possible in order to avoid the problems that can come with lifestyle inflation. Instead of getting used to spending more on things you don't actually need, spend part of it on shoring up your retirement nest egg.
You don't need to put the whole of a raise or a windfall toward your retirement plan contribution amount, but you should put some of it toward that goal. This is extra money that can help you hit your retirement contribution target for the year, and help you ensure that your retirement is successful.
Start now. Do what you can right now to start increasing your retirement plan contributions. Even if you don't feel as though you can increase your contributions by a huge amount, just adding a little more to your retirement account on a consistent basis can be a huge help in the end.
If you are conscientious about increasing your retirement account contributions, and make it a goal to eventually max out one of your retirement plans, you will be able to watch your nest egg grow. You will also have fewer worries about how you will pay for your retirement years.
Here is the original post:
How to Max Out Your Retirement Plan Contributions
- Pope OK's Indy archbishop's retirement [Last Updated On: September 22nd, 2011] [Originally Added On: September 22nd, 2011]
- Shoaib Akhtar announces retirement [Last Updated On: September 23rd, 2011] [Originally Added On: September 23rd, 2011]
- William Regal Announces his retirement [Last Updated On: September 23rd, 2011] [Originally Added On: September 23rd, 2011]
- Shaq Announces Retirement, Will Miss Free Throws [Last Updated On: September 24th, 2011] [Originally Added On: September 24th, 2011]
- Elena Dementieva Announces Career Retirement [Last Updated On: September 24th, 2011] [Originally Added On: September 24th, 2011]
- 1st and 10 discuss Randy Moss retirement and legacy [Last Updated On: September 24th, 2011] [Originally Added On: September 24th, 2011]
- American Retirement - French and Saunders [Last Updated On: September 25th, 2011] [Originally Added On: September 25th, 2011]
- Planning Your Retirement [Last Updated On: September 25th, 2011] [Originally Added On: September 25th, 2011]
- Shaquille O'Neal Retirement Press Conference (6/3/11) [Last Updated On: September 26th, 2011] [Originally Added On: September 26th, 2011]
- Shahid Afridi Announced His Retirement [Last Updated On: September 26th, 2011] [Originally Added On: September 26th, 2011]
- NHL: Mike Modano Announces Retirement [Last Updated On: September 26th, 2011] [Originally Added On: September 26th, 2011]
- REALIST NEWS - Pentagon to cut veteran retirement program? [Last Updated On: September 26th, 2011] [Originally Added On: September 26th, 2011]
- Joe Montana Retirement [Last Updated On: September 28th, 2011] [Originally Added On: September 28th, 2011]
- Fire Chief Rick Lasky's Retirement Video - City Of Lewisville [Last Updated On: September 30th, 2011] [Originally Added On: September 30th, 2011]
- Bob's retirement celebration [Last Updated On: September 30th, 2011] [Originally Added On: September 30th, 2011]
- Smackdown vs Raw 2011 - Edge Retirement Tribute [Last Updated On: October 1st, 2011] [Originally Added On: October 1st, 2011]
- ★ Assassins Creed Revelations - Original Music "Assassin's Retirement Home" ft. TGG - TGN [Last Updated On: October 2nd, 2011] [Originally Added On: October 2nd, 2011]
- Ronaldo's Goodbye Part 1 - Retirement Announcement (with English subtitles) [Last Updated On: October 4th, 2011] [Originally Added On: October 4th, 2011]
- West Palm Beach Police Chief Announces Retirement [Last Updated On: October 5th, 2011] [Originally Added On: October 5th, 2011]
- Ben Stein Talks Retirement -- Part 1 [Last Updated On: October 6th, 2011] [Originally Added On: October 6th, 2011]
- Old Age Perils: Retirement made bleak in UK by rising costs [Last Updated On: October 6th, 2011] [Originally Added On: October 6th, 2011]
- Edge discusses retirement two weeks before being forced to retire [Last Updated On: October 7th, 2011] [Originally Added On: October 7th, 2011]
- Shaquille O'Neal Retirement Mix (All Of The Lights) [Last Updated On: October 8th, 2011] [Originally Added On: October 8th, 2011]
- Stock market impact on retirement [Last Updated On: October 9th, 2011] [Originally Added On: October 9th, 2011]
- Retirement Jock Jeff Thompson-Estate Planning Life Insurance Strategies [Last Updated On: October 10th, 2011] [Originally Added On: October 10th, 2011]
- Baby Boomers Retiring in Texas [Last Updated On: October 10th, 2011] [Originally Added On: October 10th, 2011]
- Hulk Hogan Announces His Retirement From Wrestling [Last Updated On: October 12th, 2011] [Originally Added On: October 12th, 2011]
- First Draft of Yao Ming's Retirement Speech [Last Updated On: October 13th, 2011] [Originally Added On: October 13th, 2011]
- Uncut: Shaq Retires - Video [Last Updated On: October 16th, 2011] [Originally Added On: October 16th, 2011]
- Farewell Discovery: Space shuttle's last landing before retirement - Video [Last Updated On: October 16th, 2011] [Originally Added On: October 16th, 2011]
- Yao Ming Retirement Speech (FULL) - Video [Last Updated On: October 17th, 2011] [Originally Added On: October 17th, 2011]
- Shaquille O'Neal Retirement Press Conference 6/3/11 - Video [Last Updated On: October 18th, 2011] [Originally Added On: October 18th, 2011]
- Tyler Seguin - Harvard Lampoon retirement skit - Video [Last Updated On: October 19th, 2011] [Originally Added On: October 19th, 2011]
- iPHONING MY WAY TO RETIREMENT $.70 AT A TIME by Eugene Lin, Ep 44 - Video [Last Updated On: October 19th, 2011] [Originally Added On: October 19th, 2011]
- Dilbert Animated Cartoons - Confidential Information, Retirement Planning and Visionary Leadership - Video [Last Updated On: October 22nd, 2011] [Originally Added On: October 22nd, 2011]
- Steve McNair Retirement Speech - Video [Last Updated On: October 23rd, 2011] [Originally Added On: October 23rd, 2011]
- Mark Recchi announces retirement after Cup win 6/15/11 - Video [Last Updated On: October 25th, 2011] [Originally Added On: October 25th, 2011]
- Tax-Saving Tips - Retirement Savings - Video [Last Updated On: October 26th, 2011] [Originally Added On: October 26th, 2011]
- When elephants retire - Video [Last Updated On: October 26th, 2011] [Originally Added On: October 26th, 2011]
- BayPort Credit Union: Retirement - Video [Last Updated On: October 28th, 2011] [Originally Added On: October 28th, 2011]
- Randy Couture Talks Machida Kick, Retirement - Video [Last Updated On: October 31st, 2011] [Originally Added On: October 31st, 2011]
- Raw: Edge reveals that he must retire from competition - Video [Last Updated On: October 31st, 2011] [Originally Added On: October 31st, 2011]
- Shaquille O'Neal Boston Celtics Highlight Reel (Retirement Mix) - Video [Last Updated On: November 2nd, 2011] [Originally Added On: November 2nd, 2011]
- Social Security vs. Private Retirement Accounts - Video [Last Updated On: November 3rd, 2011] [Originally Added On: November 3rd, 2011]
- Roy Nelson on Retiring Cro Cop at UFC 137, Eating Well + Steven Seagal Movies - Video [Last Updated On: November 6th, 2011] [Originally Added On: November 6th, 2011]
- FedEx Express Ad: Retirement - Video [Last Updated On: November 6th, 2011] [Originally Added On: November 6th, 2011]
- Mirko Cro Cop Talks Retirement - Video [Last Updated On: November 7th, 2011] [Originally Added On: November 7th, 2011]
- MLB - Tony La Russa Announces Retirement - Video [Last Updated On: November 8th, 2011] [Originally Added On: November 8th, 2011]
- Make your retirement fund recession-proof - Video [Last Updated On: November 10th, 2011] [Originally Added On: November 10th, 2011]
- Curtis Joseph Retirement Press Conference - Video [Last Updated On: November 13th, 2011] [Originally Added On: November 13th, 2011]
- Joe Paterno Retirement -- Is it Fair? -- UPDATE: Paterno FIRED - Video [Last Updated On: November 15th, 2011] [Originally Added On: November 15th, 2011]
- Finance Friday: How to Protect Your Retirement Date from a Market Decline - Video [Last Updated On: November 19th, 2011] [Originally Added On: November 19th, 2011]
- Best Of Shaq - Retirement Press Conference - Video [Last Updated On: November 19th, 2011] [Originally Added On: November 19th, 2011]
- Lampard and Becks on why Heskey's retirement is great news! - Video [Last Updated On: November 21st, 2011] [Originally Added On: November 21st, 2011]
- Brad Pitt interview: Retirement is on the way - Video [Last Updated On: November 22nd, 2011] [Originally Added On: November 22nd, 2011]
- Bill Gates' spoof retirement video - Video [Last Updated On: November 22nd, 2011] [Originally Added On: November 22nd, 2011]
- Retirement village purchase arrangements.m4v - Video [Last Updated On: November 26th, 2011] [Originally Added On: November 26th, 2011]
- What is a retirement village? - Video [Last Updated On: November 26th, 2011] [Originally Added On: November 26th, 2011]
- Retired CIA Officer Ray McGovern: Israel - The Elephant in The Room 1/3 - Video [Last Updated On: November 27th, 2011] [Originally Added On: November 27th, 2011]
- UNCUT: Frank Retirement News Conference - Video [Last Updated On: November 29th, 2011] [Originally Added On: November 29th, 2011]
- Retirement - Kaiser Chiefs - Video [Last Updated On: November 29th, 2011] [Originally Added On: November 29th, 2011]
- Peter Forsberg Jersey Retirement - Full Ceremony - HD [Part 2/3] - Video [Last Updated On: November 30th, 2011] [Originally Added On: November 30th, 2011]
- Alonzo Mourning Gets #33 Retired in Miami - Video [Last Updated On: December 1st, 2011] [Originally Added On: December 1st, 2011]
- Hulk Hogan's Retirement Takes A Shocking Turn - Video [Last Updated On: December 2nd, 2011] [Originally Added On: December 2nd, 2011]
- NewsRadio - Retirement - Video [Last Updated On: December 3rd, 2011] [Originally Added On: December 3rd, 2011]
- Frank's Retirement Flight in HD - Video [Last Updated On: December 4th, 2011] [Originally Added On: December 4th, 2011]
- NBA 2K12 My Player Retired - Video [Last Updated On: December 9th, 2011] [Originally Added On: December 9th, 2011]
- What Financial Firms don't Get About Retirement - Video [Last Updated On: December 11th, 2011] [Originally Added On: December 11th, 2011]
- Minecraft Tutorials - Tutorial World "Retirement Tour" - Video [Last Updated On: December 12th, 2011] [Originally Added On: December 12th, 2011]
- Retirement in Ecuador - Video [Last Updated On: December 13th, 2011] [Originally Added On: December 13th, 2011]
- UFC 135: Matt Hughes on Retirement + Koscheck (Pre-Fight Intv w/ Workout) - Video [Last Updated On: December 13th, 2011] [Originally Added On: December 13th, 2011]
- A retiring professor - Video [Last Updated On: December 15th, 2011] [Originally Added On: December 15th, 2011]
- Shaq's Retirement Speech -Funny- - Video [Last Updated On: December 19th, 2011] [Originally Added On: December 19th, 2011]
- Recession snatches retirement from America's workers - Video [Last Updated On: December 22nd, 2011] [Originally Added On: December 22nd, 2011]
- 5 Forbes Tips On How To Make Money During Retirement - Video [Last Updated On: December 24th, 2011] [Originally Added On: December 24th, 2011]
- Forrest Griffin Interview: Tito Ortiz, Ultimate Fighter, Retirement - Video [Last Updated On: December 25th, 2011] [Originally Added On: December 25th, 2011]
- Expert Investors On Saving For Retirement (Intelligent Investing With Steve Forbes) - Video [Last Updated On: December 25th, 2011] [Originally Added On: December 25th, 2011]
- BJ Penn on Diaz v. GSP, Retirement- INSIDE MMA Exclusive - Video [Last Updated On: December 29th, 2011] [Originally Added On: December 29th, 2011]
- Miyamoto's "Retirement", Kingdoms of Amalur Impressions, and Chrome Gaming! - Video [Last Updated On: January 1st, 2012] [Originally Added On: January 1st, 2012]
- SHAQ Announces Retirement - Video [Last Updated On: January 3rd, 2012] [Originally Added On: January 3rd, 2012]