We all want to live out our glory days without the worry of financial burdens. The trick is to plan for retirement early and re-evaluate your situation often. Here are 5 Retirement Planning Tips:
1. Start Yesterday
The earlier you start saving the better. If you are able to put something aside each month, you should. Experts say that if you start saving in your twenties, you will be in a much safer place than if you wait until your forties.
2. Setup a Retirement Account
There are a variety of different retirement account types to consider. If your employer offers a 401(k) or 403(b), you should contribute. There are also individual retirement accounts (IRAs) for those who do not have employer sponsored accounts or for those who want to supplement their 401(k).
3. Determine How Much You Need
According to CNN money “you’ll need 70% of your pre-retirement yearly salary to live comfortably.” While that is a general rule, it still all depends on your personal situation. For example, if you have not paid off your mortgage, or if you have health problems, you may need more than 70%.
You can find retirement planning calculators online to get a more realistic idea of what you will need. They will even factor in inflation, so you can be in the know.
4. Evaluate Your Risk as You Age
When you’re young and have years to retirement, a more risky approach can be taken because your portfolio can recoup from fluctuations in the economy. As you get closer to retirement age, you should shift your portfolio into more stable, conservative investments so your nest age is more protected.
5. Consult an Expert
There is a lot of information online about retirement planning, but if you need more help, or want to get involved with more complex investing, we recommend talking with a financial advisor who can guide you through the process and help you protect and grow your assets.