{"id":1043,"date":"2020-10-02T00:00:00","date_gmt":"2020-10-02T00:00:00","guid":{"rendered":"https:\/\/qa.simplifimoney.com\/blog\/maximize-retirement-savings-with-quicken\/"},"modified":"2024-11-18T10:21:27","modified_gmt":"2024-11-18T18:21:27","slug":"maximize-retirement-savings-with-quicken","status":"publish","type":"post","link":"https:\/\/www.quicken.com\/blog\/maximize-retirement-savings-with-quicken\/","title":{"rendered":"How to Maximize Your Retirement Savings with Quicken"},"content":{"rendered":"\n<style media=\"screen\" type=\"text\/css\">\n<p>.promo-1 {<br \/>\n    border-top: 1px solid #CED0D3;<br \/>\n    border-bottom: 1px solid #CED0D3;<br \/>\n    display: flex;<br \/>\n    flex-wrap: wrap;<br \/>\n    flex-direction: column;<br \/>\n    justify-content: center;<br \/>\n    align-items: left;<br \/>\n    padding: 0px;<br \/>\n    margin: 20px 0;<br \/>\n  }<\/p>\n<p>  .promo-containter{<br \/>\n    margin: 20px 0px;<br \/>\n    display: flex;<br \/>\n    flex-wrap: wrap;<br \/>\n    flex-direction: row;<br \/>\n    align-items: center;<br \/>\n    padding: 0px;<br \/>\n  }<br \/>\n.screenshot{<br \/>\n  margin-right: 25px;<br \/>\n}<br \/>\n  .promo-content-title {<br \/>\n    font-family: Poppins;<br \/>\n    font-size: 19px;<br \/>\n    line-height: 26px;<br \/>\n    font-style: normal;<br \/>\n    font-weight: 600;<br \/>\n    letter-spacing: 0px;<br \/>\n    text-align: left;<br \/>\n    color: #22324F;<br \/>\n  }<\/p>\n<p>  .promo-subtitle{<br \/>\n    font-family: Poppins;<br \/>\nfont-size: 16px;<br \/>\nfont-style: normal;<br \/>\nfont-weight: 400;<br \/>\nline-height: 24px;<br \/>\nletter-spacing: 0em;<br \/>\ntext-align: left;<br \/>\ncolor: #576073;<br \/>\n  }<\/p>\n<p>  .promo-bullets {<br \/>\n    display: flex;<br \/>\n    flex-wrap: wrap;<br \/>\n    flex-direction: row;<br \/>\n    align-items: center;<br \/>\n    padding: 0px;<\/p>\n<p>    font-family: Poppins;<br \/>\n    font-size: 16px;<br \/>\n    font-style: normal;<br \/>\n    font-weight: 400;<br \/>\n    line-height: 22px;<br \/>\n    letter-spacing: 0px;<br \/>\n    text-align: left;<br \/>\n    color: #576073;<br \/>\n  }<\/p>\n<p>  .bullet-cont {<br \/>\n    display: flex;<br \/>\n    flex-direction: row;<br \/>\n    align-items: flex-start;<br \/>\n    padding: 0px;<br \/>\n    flex: none;<br \/>\n    flex-grow: 0;<br \/>\n    padding: 15px 50px 15px 0;<br \/>\n  }<\/p>\n<p>  .b1 {<br \/>\n    order: 0;<br \/>\n  }<\/p>\n<p>  .b2 {<br \/>\n    order: 1;<br \/>\n  }<\/p>\n<p>  .b3 {<br \/>\n    order: 0;<br \/>\n  }<\/p>\n<p>  .bullet-img {<br \/>\n    flex: none;<br \/>\n    order: 0;<br \/>\n    flex-grow: 0;<br \/>\n    margin: 0px 15px 0px 0px;<br \/>\n  }<\/p>\n<p>  .bullet {<br \/>\n    width: 145px;<br \/>\n    text-align: left !important;<br \/>\n    margin-bottom: 0px !important;<br \/>\n  }<\/p>\n<p>  .promo-CTA {<br \/>\n    display: flex;<br \/>\n    flex-direction: row;<br \/>\n    align-items: center;<br \/>\n    padding: 0px;<\/p>\n<p>    font-family: Poppins;<br \/>\n    font-style: normal;<br \/>\n    font-weight: 600;<br \/>\n    font-size: 19px;<br \/>\n    line-height: 24px;<br \/>\n    color: #2F3EA8;<br \/>\n  }<\/p>\n<p>  .CTA-link{<br \/>\n    color: #2F3EA8;<br \/>\n    text-decoration: none;<br \/>\n  }<br \/>\n  .CTA-link:hover{<br \/>\n    color: #2F3EA8;<br \/>\n    text-decoration: none;<br \/>\n  }<\/p>\n<\/style>\n\n\n\n<p>Whether retirement still feels like a long way off or right around the corner (or even if you\u2019re already there), there are things you can be doing today to make your retirement more financially secure.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What to do while you\u2019re saving for retirement<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">1. Focus on your net worth<\/h3>\n\n\n\n<p>Early on in life, people tend to focus on cash management and making sure they have enough money to cover their bills. That&#8217;s an important first step in financial management, but living month-to-month only gets you so far.<\/p>\n\n\n\n<p>Planning for retirement is about growing your assets until you have enough saved up to live on for the rest of your life. It means paying down your debts as aggressively as you can and saving up for the future.<\/p>\n\n\n\n<p>That\u2019s why your net worth is so important. Net worth is the value of all your assets (cash, investments, and the stuff you own) minus your liabilities (loans and other debts\u2014what you owe). The higher your net worth, the more resources you have to draw on when the time comes.<\/p>\n\n\n\n<p>When you\u2019re first starting out, that number is usually negative, and that\u2019s okay. By focusing on it throughout your financial journey, you can grow your net worth into a comfortable, secure retirement\u2014and maybe even <a href=\"\/blog\/want-to-retire-early-start-here\">retire early<\/a>.<\/p>\n\n\n\n<p>Quicken displays your net worth at the bottom of your account list, making that calculation for you. The software tracks it automatically, with reports to show you how it\u2019s changing over time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Little things add up<\/h3>\n\n\n\n<p>If your retirement is still a long way off, it\u2019s easy to feel like saving a few extra dollars here or there won\u2019t make that much of a difference. But that\u2019s just not true. In fact, saving a small amount can make a huge difference, especially if you start young.<\/p>\n\n\n\n<p>Depending on the market rate of return, putting just $100 toward your retirement each month starting at the age of 25 could give you over $239,000 by the time you retire. So it\u2019s never too early to start, and it\u2019s always worth contributing <em>something<\/em>.<\/p>\n\n\n\n<p>Another option is to use that money to pay down a high-interest credit card balance or car loan. Quicken includes \u201cWhat If\u201d loan calculators that can show you just how much those extra payments can save you in interest. The results can be eye-opening.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Make budgeting a habit<\/h3>\n\n\n\n<p>Most people think of budgeting as a painful, penny-pinching exercise, but a good budget doesn\u2019t have to be like that at all.<\/p>\n\n\n\n<p>Quicken can create a budget for you automatically, based on your actual income and spending, helping you find easy places to save. And you can customize that budget however you want to, tracking everything or just a few things, according to your own budgeting style\u2014because the best budget for you is the one you\u2019ll actually use.<\/p>\n\n\n\n<p>Just going through this process and taking a close look at your monthly inflows (your net salary or other income) compared to your outflows (non-discretionary expenses like bills <em>and<\/em> discretionary expenses like food and shopping) is a valuable exercise in itself.<\/p>\n\n\n\n<p>Even if you don\u2019t want to track all your spending every month, just dedicating one afternoon to this budgeting exercise could change the way you think about your spending habits.<\/p>\n\n\n\n<p>When you can see how your budget is helping you save more toward your retirement, and you can see your net worth growing over time, there\u2019s even more incentive to stick with it.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Set up savings goals\u2014and an emergency fund<\/h3>\n\n\n\n<p>Believe it or not, one of the biggest ways you can impact your long-term retirement savings is by saving up for short-term, planned expenses and building up a buffer for emergencies instead of paying for those things on credit.<\/p>\n\n\n\n<p>Credit cards have notoriously high interest rates. When you keep a balance on a credit card, the interest charges can really rack up. Any time you plan ahead, saving up to pay off those large purchases immediately, like vacations or holiday shopping, you\u2019re going a long way toward building your net worth.<\/p>\n\n\n\n<p>Quicken lets you set up as many savings goals as you need and even include them in your budget. Set up one for that vacation and another for a rainy-day fund so you have some cash for emergencies. With savings goals, you can plan for your short-term goals as well as your long-term needs.<\/p>\n\n\n\n<p>You can also add your savings account to Quicken. The software will download your current balance and transactions automatically, just like it does for any other account, so you can see your contributions and track your progress.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Take advantage of employer contributions<\/h3>\n\n\n\n<p>If you\u2019re fortunate enough to have employment benefits that include a <a href=\"\/blog\/what-is-401k\">401(k) retirement plan<\/a>, there\u2019s a good chance your employer has a contribution matching plan in place. For every contribution you make toward your retirement, your employer will match some percentage of that amount up to a certain cap, essentially paying you more for doing the same job you\u2019re already doing.<\/p>\n\n\n\n<p>Talk to your employer\u2019s HR department to make sure you&#8217;re contributing enough to get 100% of your employee match. Most young professionals have a hard time contributing enough to their retirement to meet their employer\u2019s cap, but try to hit that cap as soon as you can.<\/p>\n\n\n\n<p>If you\u2019re using Quicken, you can track those contributions to make sure you\u2019re taking maximum advantage of your employer\u2019s plan. And remember that your 401(k) is still a brokerage account. Like any other investment account, you\u2019ll want to make sure it\u2019s invested in a diversified portfolio. Quicken lets you connect your investment accounts along with all your other financial accounts, so you can see your complete portfolio.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">6. Don\u2019t borrow from your retirement<\/h3>\n\n\n\n<p>A big part of planning for your retirement is understanding how all the pieces of your plan fit together. If you don\u2019t have a plan in place, it can be tempting to skip a month or two of your retirement contributions to do something like take a vacation. But that\u2019s just borrowing from your retirement to do something today.<\/p>\n\n\n\n<p>Instead, create a vacation savings goal and work toward it instead of skipping your contributions or taking on credit card debt. When you understand your savings, credit, and contribution decisions as all part of your retirement goals, it\u2019s easier to stay on track.<\/p>\n\n\n\n<p>It\u2019s also important not to withdraw money early from your 401(k) or IRA. If you do, you\u2019ll usually incur a huge penalty. That\u2019s another reason to create those savings goals\u2014for short-term goals like vacations and holidays as well as long-term goals like paying for your kids\u2019 college. Plan ahead as much as you can so you won\u2019t find yourself tempted to withdraw money from your retirement savings.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">7. Adjust your budget as you grow<\/h3>\n\n\n\n<p>As you progress in your career and make more money, having a plan in place can help you make informed decisions about how to spend that extra income. That\u2019s another reason it\u2019s so important for your budget to be easily adjustable.<\/p>\n\n\n\n<p>By playing with different options, you can see how each decision changes the whole picture. If you spend more on a higher car payment, that\u2019s money you can\u2019t put toward your holiday savings\u2014or toward your retirement contributions. Remember, those choices add up over time. Saving now means you\u2019re building your net worth for the future.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What to do when you\u2019re nearing retirement<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">1. Focus on a positive net worth<\/h3>\n\n\n\n<p>As you move forward in your plan for retirement, your assets should start being worth more than your debt. And the closer you get to retirement, the more important it is to have a higher net worth. That means either decreasing your spending or <a href=\"\/blog\/quicken-stories-robert-hill\">increasing your income<\/a>\u2014or both.<\/p>\n\n\n\n<p>Quicken\u2019s Lifetime Planner* uses all the data you have in Quicken to look forward instead of back. Add your details to personalize it to your own situation\u2014your age, your spouse\u2019s age, your expected retirement ages, your tax bracket, your kids and their ages, the timing and cost of their college educations, financial information about your home, and so on.<\/p>\n\n\n\n<p>Quicken walks you through these factors step-by-step and then uses that information to project your financial picture through the full length of your retirement. Change any factor to see how the picture changes, so you can make smart decisions, understanding how they\u2019ll affect your financial future.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Pay off debt<\/h3>\n\n\n\n<p>One way to change that future for the better is to pay down your debt more aggressively whenever you have some extra cash after making your maximum retirement contributions.<\/p>\n\n\n\n<p>To see where those extra loan payments will have the most impact, run Quicken\u2019s What If calculator on each of your loans. Just enter the amount of the extra payment, and Quicken will show you how much that payment will save you in interest over time.<\/p>\n\n\n\n<p>This is especially important for high-interest debt like credit cards. Increasing your payments by even a small amount can dramatically reduce the amount of interest you\u2019ll pay and the amount of time you\u2019ll carry the debt.<\/p>\n\n\n\n<p>You can also use the What If calculator to see how a small increase in your regular mortgage payment can impact your long-term savings. Or use it to tell Quicken when you want to have that mortgage paid off, and Quicken will tell you what payments you need to make to get there.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Maximize your investment contributions<\/h3>\n\n\n\n<p>Once you\u2019re maximizing your employer contributions to your 401(k), consider starting your own IRA or Roth IRA. The government <a href=\"\/blog\/ira-contribution-limits\">limits your contributions<\/a> here too, so make sure you\u2019re taking full advantage. If you\u2019re over 50, you can make additional catch-up contributions to help you reach your goals a little faster.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Start taking less risk<\/h3>\n\n\n\n<p>You can also invest in the stock market with your own <a href=\"\/blog\/how-to-start-investing\/\">brokerage account<\/a>, but as you near retirement, most financial planners recommend taking less risk in your investments. Quicken lets you see what you\u2019re holding in your mutual funds and set target allocations across your entire portfolio, helping you make informed decisions.**<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What to do while you\u2019re living in retirement<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">1. Revisit your budget<\/h3>\n\n\n\n<p>It\u2019s also a good idea to take another look at your budget. Make sure the spending you\u2019ve allotted to your categories still makes sense for your new lifestyle and that your overall spending is within your fixed income. Quicken makes it easy to adjust your budget as often as you need to as your needs change and as you find new ways to save.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Look for ways to save<\/h3>\n\n\n\n<p>Remember that there are lots of discounts out there for retirees. Take advantage of them wherever you can. Use your Quicken budget or Quicken\u2019s spending reports to target your non-essential spending so you can find places to save, but don\u2019t assume you\u2019ll have to give up the things you love.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Do more of what you love<\/h3>\n\n\n\n<p>One of the best things about using a personal finance management tool like Quicken is being able to see exactly where your money is going. If you love golfing, for example, create a \u201cgolf trips\u201d tag in Quicken and tag all your spending while you\u2019re on your next golfing vacation so you can track it across multiple categories: dining, rental car, and so on.<\/p>\n\n\n\n<p>Sometimes what you love isn\u2019t as expensive as you think. By finding a great local sandwich shop instead of eating at that expensive hotel restaurant every night, you might save enough to take those trips more often. Saving money doesn\u2019t have to be about giving things up. Sometimes it\u2019s about figuring out how to do more of what you love.<\/p>\n\n\n\n<p><em>For more retirement tips and articles from Quicken, visit the <\/em><a href=\"\/blog\/category\/retirement\"><em>retirement section<\/em><\/a><em> of the <\/em><a href=\"https:\/\/www.quicken.com\/blog\"><em>Quicken blog<\/em><\/a><em>.<\/em><\/p>\n\n\n\n<p><em>*Lifetime Planner is only available in Quicken Deluxe, Premier, and Home &amp; Business for Windows.<\/em><\/p>\n\n\n\n<p><em>**Morningstar X-ray and Asset Allocation tools are only available on Quicken Premier and Quicken Home &amp; Business for Windows.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>How to maximize your retirement savings with Quicken. Whether you\u2019re just starting to save for retirement, getting close to retirement, or already living it, this guide walks you through the things you could be doing to make that retirement more financially secure.<\/p>\n","protected":false},"author":59,"featured_media":1046,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"none","_seopress_titles_title":"How to Maximize Your Retirement Savings with Quicken | Quicken","_seopress_titles_desc":"How to maximize your retirement savings with Quicken. 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