You may just be starting your nursing career at 20 years old or at 60 years old, but it is never too early to start saving for your retirement. When it’s time to retire, the last thing you want to find out is that you don’t have enough to live comfortably without working. Honestly, who wants to work well into their 70’s just so they can survive? Not me. Here are a few steps you can take to make sure your retirement future is bright.
- Your employer might offer a 401k or a 403b in which you can put a certain percentage of your paycheck (pre or post tax) towards your retirement plan.
- Now, some employers will MATCH whatever you put into your account, up to a certain percent. Essentially, that is free money going towards YOUR retirement and you should never pass that up.
- There IS a limit of how much you can contribute yearly to your 401k/403b and that is 18,000 USD.
- You can open up an IRA (Individual Retirement Account), in which you can contribute up to 5,500 USD yearly. There are two different types of IRA accounts.
- Roth IRA: The money you put in is contributed after taxes.
- Traditional IRA: The money you put in is contributed before taxes.
Here’s an example: Hypothetically speaking, you bring in 100,000 USD/year.
You max out your 401k/403b, contributing 18,000 USD this year.
You max out your IRA, contributing 5,500 USD this year.
In total, you are contributing 23,500 this year towards your retirement.
Traditional IRA: You would be reducing your annual taxable income to 76,500 USD. Your salary of 100,000 minus the 23,500 USD pre tax.
Nursing is a tough job, both mentally and physically. A job in which it will be taxing on your body to do in your 60’s and 70’s (depending on your specialty). Start planning your retirement NOW. This doesn’t mean you have to stop going on vacation, shopping, etc. Just start incorporating your retirement contributions into your budget and you will thank yourself later in life.
Keep an eye out for upcoming blog posts related to long/short term disability, life insurance, cryptocurrency investing, budgeting, and many more tips!