We all want to retire comfortably. This goal is not completely out of your reach though. Are you aware of what you need to do to get a retirement plan put together you can benefit from? If you don’t, keep reading to learn how.
Figure out what is needed for retirement. You won’t be working, so you won’t be making money. On top of that, retirement isn’t cheap. It is estimated that prospective retirees should save between 70% and 90% of their income to live at their current standards after retirement. This is why it’s a good idea to plan ahead of time.
If you take a lot of medications and are living on a fixed income in retirement, consider a mail order drug plan. These plans can help you to get a three to six month supply of maintenance medications for less than the drug store charges. You also get the convenience of home delivery.
As you face retirement, consider going out and making new friends. While there may be nothing wrong with the old group you hang out with, not everyone stops working at the same time. You will want people you can relate to and people with similar schedules. Don’t be afraid to seek out new buddies for your golden years.
If your employer offers a retirement plan, invest in it. Many employers offer a matching plan which increases your savings, so make sure you invest at least up to the matching amount. In addition to saving for retirement, a 401k plan will help lower your income taxes every year.
Don’t be afraid to ask questions. Unfortunately, the problem many people face today is simply not knowing enough about their retirement options to make a decision. Ask friends, family, and coworkers about their retirement plans and your available options. You’ll be surprised to learn that there is a world of possibilities waiting for you.
Think about partial retirement. If you want to retire but just can’t afford it yet, you may want to consider partial retirement. This can mean working at your current career part time. You still have income, but you can relax more.
Retirement planning not only includes financial preparation, but also preserving your health. The retirement years can be filled with enjoyable activities if your body is still healthy. Make sure you can take advantage of those opportunities when you finally do retire by making sure to remain active and protect your health.
Learn about pension plans. Learn everything you can about it before you invest any money. If you will be changing jobs at any point, learn what you need to know about rolling the money over to a new company. See if your previous employer offers you any benefits. You may qualify for benefits through the pension plan of your spouse.
If you are already planning for your retirement, you should know what your retirement needs are. Most experts estimate you will need at least 90% of your income (pre-retirement) in order to keep your standard of living once you retire. So by starting to save early, you will have more time for your money to grow.
Leave your retirement savings alone. Taking money out will hurt you in more ways than one. You will lose out on interest, for one thing. In addition, you could have to pay a withdrawal penalty. If you are switching jobs, either leave the money where it is or bring it over to an IRA.
If you’re planning on taking advantage of a workplace retirement account, make sure you know how long it takes to be vested in the account. Some accounts will not allow you to keep your employer’s contributions unless you’ve been an employee for a set number of years. Know how long you’ll need to be working in order to maximize your payout in the end.
Make spending money on yourself a priority in retirement. While many parents continue supporting their adult children in some way or another after retirement, you should not do so unless you can truly afford to. Make your children act as independent adults, and use your money to meet your necessary expenses, wants and needs.
Downsizing is an excellent way of making your money go a lot further. If you don’t carry a mortgage, you are sure to still have the expenses that maintaining a home requires. It may be wise to move into a smaller house, condo or townhome. You will save more money this way.
Once you retire, what kind of income do you expect to have? This includes any government benefits, savings interest, and employer pensions. The more funds you can tap, the more security you have. Always seriously consider any possible investments or provisions you can make now to increase your income later on.
As you get closer to retirement you should recalculate yearly whether you are on track to meet your goals or not. If you aren’t, you’ll need to put away more money monthly to get yourself there. You can also change your investments to vehicles which bring in more interest instead.
The most important thing you can do for retirement is to save as much as possible and start as early as possible. Of course, it’s important that you start at all, so any age can be compensated for, but if you can start with your first job you’ll end up better off.
When you retire, it’s a must to change your investing strategies to something more secure. You don’t want to play high risk investments during retirement age. Sure you still want your money to make you money, but make safer choices with your nest egg. Losing it now can be a big problem.
When you set goals for retirement, be realistic. Don’t use any “tried and true” amounts that others tell you are what your goals should be. Instead, calculate your own expenditures to ensure you are saving up exactly what you need and nothing more, unless you want to save more.
Different aspects of retirement are discussed in this article. Don’t forget to actually apply the tips you’ve learned here today. It is possible to retire in style, but it takes planning which needs to happen now.
Satovsky Asset Management (SAM) is a New York City based independent registered investment advisory (RIA) firm.