There are times while an investor’s in the midst of their earning years where finding additional money to add to retirement account can prove extremely difficult. Whether it’s college tuitions or a new roof on your house, a tight budget can prevent your investment ability. There are creative ways to find money through inefficiencies in your current saving plan. If you can’t squeeze another cent from your budget then here is a simple way to grow your retirement fund without bleeding your budget dry.
Consider changing your investment plans. Make sure your investments are put int he lowest cost investments available to you. Cutting your investment fees is like adding additional money back into your savings plan. By moving your money to the lowest cost investment fund you are lowering your cost to invest your money, and without withdrawing additional money from your budget you can add to your bottom line.
If you are doing the majority of your saving through a 401k plan that lacks lower cost options, then consider the makeup of your plan and weigh your options. Alternative low-cost investments or the ability to find similar funds with lower fees can still give you the ability to locate savings through lower cost investments and reallocate those savings to investment. If moving your assets is not an option, that doesn’t mean you can’t find ways to take advantage of the cost savings method of increasing your fund without spending extra money. For starters, if all of your savings are not allocated into your 401k then even moving a percentage of your retirement fund into cost-effective plans can yield savings. If you have an IRA, consider steering those funds into lower fee index funds that charge many that charge lower than 1%.
Using inexpensive investments as an option to grow your retirement fund can provide a seamless method of growth for your nest egg; however, it will never yield the type of growth you could gain from capital investments. If your retirement saving plan focuses on low-cost investments and you find a feasible method to make additional contributions to your 401k savings, then your retirement accounts can yield gains without breaking the bank.