Thursday, February 2, 2023
Market-Reporter
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
Market-Reporter
No Result
View All Result
Home Retirement

My Dad Retiring Years Early Made Me Change My Habits in 3 Ways

MtR by MtR
June 26, 2021
in Retirement
0


  • My dad is retiring 10 years earlier than he expected, and it made me change my saving habits. 
  • I realized retirement doesn’t always happen when you expect, so I increased my savings.
  • I also started looking into an HSA to save more for healthcare expenses later.
  • Want to share your retirement story with Insider? We’re looking for retirees to profile. Send reporter Liz Knueven an email at lknueven@insider.com.

My dad didn’t expect to be leaving work in 2021 — he thought he had about 10 more years left. But, he decided to take a deal to retire 10 years earlier than expected. 

He’s always extolled the merits of 401(k)s and IRAs to my brother and me, and encouraged each of us to open them up as soon as possible. Since he taught us, I had to think he’d be totally prepared for retirement, even though 10 years early is a lot of time. Which made me wonder: If I were to leave work 10 years earlier than expected, would I be ready? My answer was likely a no. 

So, I made three straightforward changes to how I’m saving and investing for later. 

1. I upped my 401(k) contribution

No one adjusts their 401(k) contribution more than I do, and I keep increasing it whenever I feel the nudge. While I do it at least once a year, I felt another nudge when my dad told us the news. 

Since it’s hard to go wrong with saving more earlier, it felt like the right move. Retirement savings grow based on compound interest, where money saved earns money over time. Since I’m still relatively young, anything I invest now will have lots of time and potential to grow.

I like to think that I have control over a lot of things in my life, but my dad’s sudden retirement was a good reminder that that’s not always the case. Increasing my contributions even by a small amount made me feel like I was taking a step in the right direction.

2. I’m looking into an HSA

My initial reaction to my dad retiring wasn’t, “What do you plan to do with your time?” After covering these topics as a reporter, it was, “What will you do about healthcare?”

Healthcare expenses are one of the biggest costs retirees will face. For my dad, who’s retiring before he becomes eligible for Medicare at age 65, it’s even more tricky. Getting affordable healthcare in the years between retirement and Medicare age can be a huge expense. (My dad will have insurance from his job for a while, and then he’s prepared to pay for private insurance until Medicare kicks in.)

Not knowing what I’d do in this situation, I started looking into a Health Savings Account, or HSA. These accounts are a way to save more for medical expenses and healthcare costs both now and later on. The funds don’t expire and can be invested for the long-term. They’re tax-advantaged in three ways: Tax-free money goes in, grows tax-free, and withdrawals are tax-free. 

 3. I increased my IRA contributions, and automated the deposits 

My dad’s retirement is forcing me to re-think my own goals and how I’ll get there. 

In addition to increasing my 401(k) contribution, I realized I could do better with my IRA contributions. I wanted to be as consistent as possible, and contribute more. To do that, I modified my direct deposit to my IRA. 

Instead of having one big chunk that comes out at the beginning or end of the month, I found that I’d be able to contribute more by putting in money weekly. That allowed me to increase what I’m saving overall. 

While everyone’s retirement is different, I hope that I can prepare myself well enough for my own to be as smooth as my dad’s. 

More Personal Finance Coverage



Source link

Related articles

How to 10X Your Retirement Savings While Barely Lifting a Finger

August 10, 2022

Australian government scraps COVIDSafe app, Serena Williams teases her retirement, and a dire new sea ice record — as it happened – ABC News

August 10, 2022

Related Posts

How to 10X Your Retirement Savings While Barely Lifting a Finger

by MtR
August 10, 2022
0

Saving for retirement isn't easy, especially during tough economic times. With a recession potentially on the horizon, many workers are...

Australian government scraps COVIDSafe app, Serena Williams teases her retirement, and a dire new sea ice record — as it happened – ABC News

by MtR
August 10, 2022
0

Australian government scraps COVIDSafe app, Serena Williams teases her retirement, and a dire new sea ice record — as it...

Former Muskogee Firefighter Visits Department 41 Years After Retirement

by MtR
August 9, 2022
0

A 95-year-old former Muskogee firefighter was invited back to the Muskogee fire department today, 41 years after retiring.The trip was...

Serena Williams says ‘countdown’ to retirement has started

by MtR
August 9, 2022
0

Issued on: 09/08/2022 - 19:48Modified: 09/08/2022 - 19:46 Toronto (Canada) (AFP) – Serena Williams, a 23-time Grand Slam champion and...

Former Detroit Lions offensive lineman announces retirement after 7 seasons

by MtR
August 9, 2022
0

ALLEN PARK -- Kenny Wiggins, who played on the offensive line for the Detroit Lions across three seasons, announced his...

Load More
  • Trending
  • Comments
  • Latest

Bank of England tells ministers to intervene on digital currency ‘programming’

June 21, 2021

Tips for checking smoke alarms during daylight saving time

March 12, 2022

GLOBAL MARKETS-U.S. stocks follow Europe up; Treasury yields rise, dollar firm

July 9, 2021

What will Durham County education bonds pay for? A full list

July 8, 2022
African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

0
Maxum Foods releases Global Dairy Commodity Update for June

Maxum Foods releases Global Dairy Commodity Update for June

0
Letter: Perpetual bonds can help states fight hunger

Letter: Perpetual bonds can help states fight hunger

0
United Kingdom ETFs Are Riding the Re-Opening Momentum

United Kingdom ETFs Are Riding the Re-Opening Momentum

0

Investment in overseas real estate surges : The DONG-A ILBO

August 11, 2022

U.S. inflation CPI report, Wall Street, currencies

August 10, 2022

Alberta oil production set new record in first half of 2022

August 10, 2022

Industrial Lubricants Market to Reach $71 Billion by 2027.

August 10, 2022

Recent News

Investment in overseas real estate surges : The DONG-A ILBO

August 11, 2022

U.S. inflation CPI report, Wall Street, currencies

August 10, 2022

Alberta oil production set new record in first half of 2022

August 10, 2022

Categories

  • Asia
  • Bonds
  • Canada
  • Commodities
  • Cryptocurrencies
  • Currencies
  • Emerging Markets
  • ETFs
  • Europe & Middle East
  • IPOs
  • Latin America
  • Mutual Funds
  • Personal Finance
  • Real Estate
  • Retirement
  • Spending & Saving
  • Stocks
  • U.S. Markets
  • Privacy & Policy
  • About Us
  • Contact Us
  • Advertise with us

© 2021 Copyright Market-Reporter

No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate

© 2021 Copyright Market-Reporter