Thursday, May 5, 2016, AM | Leave Comment
A comfortable retirement just doesn’t happen. It’s something that must be planned for decades in advance. If not, you may be forced to go back to work in your old age.
However, there are strategies you can use to insure that doesn’t happen.
Below are seven tips to help make sure your finances are stress-free in retirement.
Automate Saving for Retirement
To insure that you are always saving for retirement, make it so a portion of each paycheck is deposited into a savings account specifically set aside for retirement. Taking advantage of an employer’s 401(k) plan may be an even better idea especially if the contributions are matched.
Keep Emergency Funds
Next, you need to make sure you are never tempted to dip into your retirement savings. One way to insure you won’t is to create an emergency fund of several thousand dollars for emergency expenses like car repairs, medical expenses and what have you. Replenish the funds if they’re spent.
Don’t Amass Debt
You also need to insure you don’t amass debt before you enter into retirement. If you use credit cards, pay off the balances every month. Rely more on cash, checks and debit to insure you are living within your means.
Live within a Budget
Budget all your expenses. That way, you’ll be far less likely to go into debt and will have more to save towards retirement. Make sure to budget out each week and month. Plan your budget around upcoming bills, and try to live frugally in general.
Invest in the Market
If you want to be serious about saving for retirement, you should invest a portion of your savings into the market. You can do this on your own or through a retirement plan that invests a portion of its funds into the market. Either way, make sure you are educated and have a properly diversified portfolio.
Plan for Retirement Living Accommodations
You also need to plan for where you will live during your retirement. Do you want to own a home or live in a retirement community with other seniors? Consider the options available near where you want to live. One of the advantages of retiring in Hot Springs, Arkansas, for example, is the nearby retirement communities.
Chose a Retirement Plan
You should also obtain a retirement plan to insure you have the income needed. Good options include 401(k) plans, SEP IRAs, Simple IRAs and Roth IRAs.
Overall, you need to start planning for retirement early. If you don’t, chances are you won’t have the financial stability to enjoy your later years.Facebook.com/doable.finance