Dwight Dykstra discussed how one can save for retirement in one's 30s
ORLANDO,, FLORIDA, USA, December 27, 2021 /EINPresswire.com/ — Once one makes it to their 30s, one is likely becoming more settled in their career and making more money than in their 20s. One might even be thinking about getting married, having kids, or buying a home if one hasn’t already.
But one thing one might not be thinking too hard about is their retirement. After all, one still has thirty years of work left! But that’s a mistake, warns wealth management advisor Dwight Dykstra. When it comes to retirement planning, the sooner one starts, the better.
These are some of Dykstra’s best tips on how to start saving for retirement in their 30s and ensure a comfortable financial future.
Max Out Your 401(k) and Match, says Dwight Dykstra
One should be putting at least 10% of their paycheck into a 401(k) every month, says Dwight Dykstra. But with an annual contribution limit of $19,500 in 2021 and $20,500 in 2022, one should get as close to maxing out as possible.
This does more than just save money for retirement, it also lowers their tax burden because contributions to 401(k) fund are pre-tax. If one saves enough to bump themself down a tax bracket, that could be thousands of extra dollars in one's pocket every year!
Even if they're not feasibly able to save that much of their paycheck, one should at least be investing enough to qualify for any employer match offered by their company. Matches are basically free money meant to encourage one to invest. So make sure to take advantage of an easy way to grow returns, advises Dwight Dykstra.
Don’t Be Afraid to Take on a Little Risk
One should always listen to their gut about how much risk they're willing to handle, says Dykstra. But in their 30s, remember that one can afford to take on a little more risk in one's investments.
With thirty years or more for their investments to grow, one doesn’t have to worry as much about short-term volatility. This means one can take risks that will lead to higher than average returns in the long term.
A Diversified Portfolio
A great way for one to protect their investments is to diversify as much as possible. This mitigates risk by keeping their money in several places. That way, if one investment fails, one still has their other investments to fall back on.
Diversification can take many forms, but it’s best to have a range of industries, verticals, and investment types, Dwight Dykstra says. A mix of stocks, index funds, and real estate, for instance, is the perfect place to start.
Caroline Hunter
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