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Plan for Retirement in Your 20s to Build Your Future

Apr 23, 20214/23/2021


Thinking about retirement early in your career can pay off in the long run. When you plan for retirement in your 20s, you have the chance of saving more, building more interest and possibly even retiring earlier.

Get Started Now: Plan for Retirement in Your 20s

Think of saving as an investment in your future. The longer your money has to grow, the bigger it could potentially get. Savings and planning vehicles include:

  • A savings account; do an online search and find the best interest rate available
  • Money market accounts
  • Mutual funds
  • Annuities
  • Your employer’s 401(k) plan or other retirement plan

Pay Down Debt

Unmanaged debt adds stress to life now. It can affect your future by reducing the amount of money you can put toward planning for retirement and making wise investments, threatening your creditworthiness and increasing the likelihood of taking on additional debt. Take control of your debt by:

  • Paying bills on time
  • Keeping credit card balances low or paying them off each month
  • Monitoring your credit score through free credit reports and resolving problems if you spot them

Make a Budget

Making a budget is as simple as creating a spreadsheet that includes:

  • Income from work
  • Investment income
  • Expenses (mortgage, rent, credit card payments, utilities, etc.)
  • Debt payments
  • Money set aside for retirement and emergency savings
  • Variable expenses (groceries, phone, entertainment, transportation, etc.)

Setting a budget and sticking to it can bring financial freedom. Regular adjustments will keep your budget relevant and will help you reach your financial goals.

Set Financial Goals

Financial goals are different for everyone, but some you might consider are:

You can use these goals to decide how much of your budget goes to current expenses and how much you need to put aside to reach your financial goals.

Buy the Right Products

It might seem odd to spend money in order to make it, but it’s true when it comes to planning for your retirement. Putting money under your mattress won’t do it, but when you have the proper balance of financial products, such as life insurance, annuities and mutual funds, you can take the first steps to achieving your goals.

Life insurance — Life insurance helps you prepare for the future by replacing income when your beneficiaries need it to help pay off a mortgage, fund funeral costs and put food on the table. Some life insurance products also have the potential to build cash value. Have a WoodmenLife Representative contact you to get the type and amount of life insurance you need.

Annuities — Annuities provide future sources of income and possibly offer certain guarantees. These are contracts where you pay premiums, and later receive regular annuity payments to create an income stream over several years.

Mutual funds — Mutual funds can help you grow funds over time in the stock market at a level of risk tailored to your comfort level. Contact a WoodmenLife Financial Representative today to find out which mutual funds may be right for you.1

Think of WoodmenLife as your partner in achieving your financial goals. Whether you’re looking to protect your family with life insurance, or are planning for retirement with mutual funds and annuities, we can help1.

  1. Securities are offered through Woodmen Financial Services, Inc. (WFS), 1700 Farnam Street, Omaha, NE 68102, 877-664-3332, member FINRA/SIPC, a wholly owned subsidiary of Woodmen of the World Life Insurance Society (collectively “WoodmenLife”). Securities other than the WoodmenLife Variable Annuity are issued by companies that are not affiliated with WoodmenLife. This material is intended for general use with the public. WFS will not provide investment advice for any individual or any individual situation, and you should not look to this material for any investment advice. WFS has financial interests that are served by the sale of these products or services.
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This is a solicitation of insurance and an agent may contact you.

Securities are offered through Woodmen Financial Services, Inc., 1700 Farnam Street, Omaha, NE 68102, member FINRA/SIPC, a wholly owned subsidiary of Woodmen of the World Life Insurance Society (collectively “WoodmenLife”). Securities other than the WoodmenLife Variable Annuity are issued by companies that are not affiliated with Woodmen of the World Life Insurance Society.

Benefits are available to members. An individual becomes a member by joining our shared commitment to family, community and country, and by purchasing a WoodmenLife product. These fraternal benefits are not contractual, are subject to change and have specific eligibility requirements.

Some fraternal benefits include additional membership requirements including length of membership, number of qualifying members in household and/or a qualifying event.

Check out the background of Woodmen Financial Services, Inc. on FINRA’s BrokerCheck.

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This company was issued a A+ (Superior) rating by the A.M. Best Company, click for additional details. WoodmenLife has been awarded a rating of A+ (Superior), the second highest ranking out of 15, for its financial strength and operating performance in 2020 by A.M. Best, an independent rating company that is nationally recognized for its objective reporting and rating of insurers.

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