Uncertainty continues to shroud the economic outlook for 2023 as recession fears and a bearish stock market continues to weigh heavily on investors. Amid the current volatility, however, it is essential not to lose sight of long-term goals.

Financial goals vary greatly from person to person. While some work to pay off college debt, others aim for home ownership. 

The current inflationary environment is causing considerable uncertainty around retirement. A study done in September last year found almost three-quarters of Americans said the rising cost of living was causing them to change their retirement plans in one way or another.

In truth, many Americans are woefully underprepared for their post-paycheck future. According to Federal Reserve data, the average American has less than $207,000 saved for their post-work life by the time they reach retirement age (65 to 69).

Despite the doom and gloom about the current state of the economy, 2023 doesn’t have to bring a financial setback. With some careful foreplanning and financial discipline, you can get your funds in order.

For many American workers, 401(k) contributions make up the financial foundation of retirement. 401(k) plans are employer-sponsored retirement plans that allow employees to contribute a portion of their salary on a tax-deferred basis.

401(k) All the Way

With a Roth IRA, your contributions can only be made with after-tax dollars. However, any earnings on your contributions grow tax-free, so you don’t have to pay taxes on them when you withdraw them in retirement.

That Extra Something

TOP Dollar Investor

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