5 Ways to Get Your Retirement Funds in Order

Friday, May 19, 2017, 6:00 AM | Leave Comment

Whether you just graduated from college or are a year or two from retirement, you should be thinking about your retirement.

If you are very young, you may be tempted to put off your planning, assuming that you will catch up with it later.

If you are older and have very little to nothing prepared financially for your retirement, you may be racked with guilt and anxiety.

Here are five ways that you can begin on your journey of getting your retirement funds in order without spending too much time or emotional exhaustion on the journey.

5 Ways to Get Your Retirement Funds in Order

  1. Create a Thorough Will

    A last will and testament will tell legal and financial authorities exactly what you wish to have done with your liquid and non-liquid assets once you die.

    You should use a lawyer to write your will, particularly if you have lots of assets, international assets or unique family dynamics.

    Your will should name an executor or administrator of the will and should be updated if your family or major financial holdings change.

  2. Use a Retirement Calculator

    A retirement calculator will help you know how much you should be saving every month for retirement based on your age, your salary and how much you hope to have saved by the time you hit retirement age.

    A retirement calculator should also take into account any income you may continue to have throughout retirement, such as Social Security benefits or rental income.

  3. Plan for Future Health Care Costs

    As you age, chances are that you will need increased health care due to acute or chronic conditions.

    Depending on your health insurance at that time, you may find that you have increased costs even with Medicare.

    Additionally, be sure to consider setting aside money to pay for assisted living, which can be an amazing resource when you are unable to care for yourself at home anymore but are independent enough not to require nursing home services.

  4. Diversify Funds

    By putting your retirement funds in a variety of accounts, you can be more certain that your finances will not be wiped out if one or two companies fail or even if the stock market plummets.

    Consider using a combination of traditional and Roth IRAs and invest in the stock market, bonds and cash.

  5. Take Advantage of Employer-Backed Options

    If your employer offers a matching plan for your 401(k) plan, be sure to take advantage of this plan at least up to the maximum amount matched by your company.

    This is essentially money that you can receive without working for it, and the money you invest in your 401(k) is a pre-tax contribution.

Of course, a trustworthy financial planner is often the person best equipped to help you with your retirement fund planning.

With the new fiduciary rule coming into effect in June, you can be sure that your adviser will be giving you information that will be best for you rather than being best for him or her.

Start your planning now, no matter what your age is, so that you will be prepared for whatever may happen later in life.

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