You might think that retirement is something you can put off for a few more years (or a few more decades), but retirement is something you should prepare for as soon as you can. Financial planners suggest starting to think about our lives after retirement decades before we’re even ready to retire. This includes calculating how much money you will need, saving your money, and envisioning how you want to live your life in your senior years.
If you haven’t thought about your retirement yet, don’t worry. It’s never too late. Check out these 9 tips to help you start planning for retirement now!
Save As Much As You Can Now – It’s true that it’s never too late to start saving for your retirement, but the sooner you can start putting money toward your retirement, the better off you’ll be. The money you will have saved early on will have more time to grow as well. It’s one of the best ways to accumulate money!
Consider a 401(k) – One of the best and easiest ways you can put money toward retirement is by opening a 401(k) account. When you contribute a sum of money to a 401(k) account, your money will have an immediate tax deduction, tax-deferred growth. This ultimately means you get more money in the bank!
Look Into Stocks for Long-Term Growth – To have the best chance of achieving high returns over long periods of times, give stocks a try. A healthy dose can ensure that your savings will grow faster than the inflation, which will increase the purchasing power of your nest egg.
Set Realistic Goals – Be honest about how you want to live in your retirement and how much you will need to live how you want. Calculate how much you need to save yearly in order to save for your retirement. Remember to project your retirement expenses based on your needs, not by rules of thumb.
Consider Working Part-Time – You might not be happy to see this tip, but working part-time in your retirement years can help you out in more ways than one. Not only will you reduce the amount of your nest egg that you need to withdraw annually after retirement, but you will also be able to stay socially engaged and intellectually stimulated. Ask for fewer hours at your current job or find an easier, less stressful part-time job that revolves around something you’re really passionate about.
Increase the Amount You Save In Time – As you earn more money at your job, do your best to put more aside for your retirement. If you can, try to save between 10 and 15 percent for retirement per paycheck. If you can’t reach that level, that’s okay! Just work your way up as time goes by. Try saving one more percent each year till you hit that 10 or 15 percent mark.
Make Life Plans – While it’s important to focus on financial factors when planning for your retirement, you should also consider what will make you happy in your retirement years. Maybe you want to travel the world, go fishing half of the week, or write the novel you’ve been wanting to write all these years. Make a life plan, stick with it, and cross off the ones you’ve done!
Don’t Touch the Fund – Your retirement fund is there for one reason – your retirement. As tempting as it might seem to delve into the fund to help you pay for a house, a car, or your college debt, resist it and take out loans instead.
Get Creative – There are other ways you can help save for your retirement. Sometimes relocating to an area with lower living expenses can help. You can also transform the equity in your home into income by taking out a reverse mortgage, if you’re able.
If you want expert help with your retirement plans, feel free to give us a call at 1-800-766-MMIC or check us out online at www.madisonmutual.com to see how we can better serve you!