Making your retirement should be a priority when the economic future is so unstable. Will Social Security still be available in 20 years, and even then Social Security is only designed to be a retirement aid and not the majority of your retirement. Pensions are a thing of the past and should not be relied upon. Frankly, most young adults who are new to the workforce probably don't even know what a pension is. Because of fading retirement options most people must turn to IRAs and 401ks to secure a solid nest egg for retirement.
The following are a few tips to help you jump start your retirement nest egg in 2014 regardless whether you have an IRA, 401k or a self directed IRA or 401k.
Plan Your Retirement
Many experts would agree that planning your retirement is vital to make sure you have enough money to last you through your retirement. It is far more likely that you will save for retirement if you actually make a plan. Those who do not make a plan tend to never think of their retirement until age catches up with them and they realize that they may never be able to retire. Make sure to start today if you haven't already created a plan for your retirement. It is also a great idea to re-evaluate your retirement and to see if you are on track or if any numbers need to be recalculated. For more tips on planning your retirement read, Is Your Retirement Plan Ready?
Increase Contributions to Your Retirement Accounts
The best way to jump start your retirement is to contribute to your retirement accounts. If possible max out your contributions each year. The contribution limits are different for IRAs and 401ks so make sure you know your limit, but if you can max it out. If maxing out your contributions isn't possible then any contribution can have a great impact. Start out by saving a little bit whether it be $50 a month or even just $5 a month. More than likely you won't feel a huge hit on the cash you need each month but in the long run your retirement will see a great boost. Contribution limits for 2013
Diversify Your Portfolio
There are plenty of great investment professionals that suggest diversifying your portfolio. Making sure you are diversified among your investments is crucial to minimize a down economy. One solid way to minimize your risk is to invest in non-traditional investments. Some of these investments can be real estate, precious metals and even private equity. One thing to note is that many investments professionals do not know that you can invest in these non-traditional investments with an IRA. While many do not know about it, it can be done with your IRA through what is called a self directed IRA or a self directed 401k.
Get Your Head in the Game
If you have the time and/or patience it can be a great option to manage your retirement investments yourself. For most people it is wise to start out slow and setting up a self directed IRA can be just right for those wanting to start the process of managing their own investments. Maybe you want to start out buy purchasing some precious metals in your IRA or maybe you have always wanted a real estate investment inside your retirement account. Whatever it may be, a self directed IRA is a great option for taking control of your retirement accounts and what they are invested in. Make sure you know these Self Directed IRA Rules to help maxamize your potential.
Author: Nick Barker