Most newlyweds don’t give much thought to retirement since it is so far away. There’s bills and loans to pay, the thought of a baby and his education and of course the cost of a honeymoon. Yet retirement should be on the minds of newlyweds because a couple can’t grow old together in a comfortable manner unless they are financially sound.

Develop A Plan

The first step towards savings for a retirement is making a plan. Write down how much money you and your spouse will need to retire and do the things that you want to do. Most retirees want to do some traveling but others are content to rest by the pool. Whatever your goals are, define them clearly so that you can develop a plan of attack. If you have any financial questions, reach out to the accounting services in Miami for help.

Employer Sponsored Retirement Plans

If your employer has a sponsored retirement savings plan that matches any contributions that you make to your savings, take advantage of it. This is an invaluable resource as it is typically tax deferred. This money will be taken right out of your paycheck and put into your savings so that you are not tempted to spend it. Start contributing to this type of program right away so that you can maximize your savings with the help of your employer. If your employer doesn’t offer a 401k plan, you’ll need to develop your own retirement savings system. It is most prudent to invest in mutual funds or a traditional/Roth IRA.

Stock Market Trading Versus Investing

Newlyweds are advised to invest in a diverse group of mutual funds that spread risk out across a number of industries. This is a much safer way to invest retirement savings compared to playing the stock market on a daily or weekly basis. Even small contributions to mutual funds can make a large difference over time. Investing in mutual funds or even bonds is a much better choice than leaving the money in the bank where it will accumulate minimal interest that doesn’t even keep pace with inflation. Don’t forget that the federal government has printed plenty of money over the past decade to stimulate the economy. This means that the value of the American dollar is decreasing and constantly losing value. If you don’t invest your savings, it will decrease in value while sitting idly in the bank.

While newlyweds face a variety of initial expenses, they should make it a point to save 10% of their net income after taxes. Be sure to contact a Miami tax preparer to help maximize your deductions and help plan for your golden years. Retirement might be 40 years away but time flies when you are working 40 hour weeks. Add in the fact that the social security system is expected to run out of funds within the next 20 years and there is a recipe for disaster if you haven’t taken it upon yourself to save for retirement.