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Editor’s Note: This story originally appeared on The Penny Hoarder.
If you’re feeling shaky about your retirement savings, you’re not alone.
According to a February 2021 research report by the National Institute on Retirement Security, 56% of respondents said they’re worried about achieving a financially secure retirement.
If your savings fell short in 2021, the new year is a great time to get back on track and reach your retirement goals.
We’ve rounded up a few tips to help get you there.
There was a lot going on this year. We get it.
Maybe you started a new job or picked up a side hustle. Maybe you exited the workforce for a while to take care of your family.
Putting aside money for retirement may have been the last thing on your mind.
Following these steps can help transform saving for retirement from a scary to-do list item into a wealth-building reality.
1. Stash Money in Your 401(k) Before 2021 Is Over
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Stepping up your retirement savings now — before 2021 ends — could give you a nice tax gift next year.
That’s because contributions made to your 401(k) before Dec. 31 help lower your yearly taxable income.
It’s not a tax credit or deduction, but by lowering your taxable income you could save money at tax time — or even boost your refund.
The maximum you can contribute to a 401(k) in 2021 is $19,500 — or $26,000 if you’re 50 or older — by the end of the year.
2. Don’t Have a 401(k) at Work? Open an IRA With a Robo-Adviser
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Not everyone has access to a 401(k).
In fact, 33% of all private industry workers lacked access to any sort of employer-provided retirement plan in 2020, according to the Bureau of Labor Statistics.
If that’s your situation, you can still save for retirement on your own. And we promise, it’s not as scary as it sounds.
Robo-advisers are online companies that use computer algorithms and advanced software to build and manage your investment portfolio.
They take the guesswork out of investing by picking stocks and bonds that align with your risk tolerance and financial goals.
The best robo-advisers on the market give you access to tax-advantaged individual retirement accounts (IRAs). You can set one up in less than 20 minutes without ever picking up the phone or speaking with an actual person.
Companies like Wealthfront and Betterment give you the option to open either a traditional IRA or a Roth IRA when you create …….