Retirement Planning 101: Everything You Need to Know
Retirement might seem like a distant event that you don’t have to think about yet. But, trust us, with 10,000 Americans hitting retirement age every day, it’s sure to creep up on you!
That’s why it’s crucial to prepare for it ASAP, regardless of your current youth. Want some help with this all-important task?
Well, you’re in the right place. Today we’re going through a selection of top retirement planning tips. Check them out, put them into action, and start making a retirement plan today.
Start Saving Yesterday
The secret to a successful retirement always comes down to money. You should aim to have enough of a nest egg to enjoy your golden years without financial stress looming over you all the time! To get there, you first have to figure out how much you’ll need and create a savings plan to make it happen.
Start by compiling a list of everything you’d like to do in retirement and what regular expenses you might have. Then try to work out how much it’ll all cost, factoring inflation in as you go. You can then use that total figure (alongside how much income you expect to have upon retirement) to gain insight into how much you’ll need to save.
Leverage Retirement Accounts
With your savings goals decided, it’s time to get serious about opening and paying into a retirement account. After all, it’s one thing to put money into a standard savings account and another altogether to invest it. Thanks to retirement accounts like the 401(k) and the Roth IRA, you’ll experience:
- A considerably higher annual return on anything you save, and
- The power of compound interest, which will snowball your monetary gains over time.
Unsure about retirement accounts or how to get started? Do some further research into retirement planning basics online, speak to a financial advisor, and/or visit websites like www.thejerusalemportfolio.com for more information.
Pay Down Debt
Paying down debt’s hard enough when you’re in full-time work. But it gets even harder when you retire and bid farewell to those monthly paycheques! With your income diminished and expensive debts still to cover, you may struggle to make ends meet.
Avoid that fate by working hard to eliminate them while you’re employed. Make the most of the ability to do overtime and take on extra shifts! You’ll pay off your mortgage, credit card debts, and car loans with much greater ease and enjoy far more financial freedom in retirement as a result.
Don’t Forget These Retirement Planning Tips
Retirement might seem like a long way away. But life’s short, which means your 65th birthday is sure to come around faster than you expect it to! For that reason alone, we strongly recommend you begin planning your retirement sooner versus later.
With any luck, the simple retirement planning tips in this post will help get you started! Take action on the advice and you’ll be one step closer to making your golden years glorious. Search ‘retirement’ on the website to continue your education on this topic now.