Saturday, March 1, 2014, AM | 1 Comment
Retirement is something that many people look forward to. Unfortunately, many recent retirees have had to cut back on their expectations of retirement bliss because they did not plan ahead as much as they should have. Here are five steps that future retirees can take to ensure a better retirement standing.
Those who start planning for retirement in their early twenties will do much better than those who wait until age 40. The time value of money allows accrued interest to earn interest. This compounding can allow small investments to grow into large nest eggs by retirement.
Pay Yourself First
Successful people like Robert Kiyosaki recommend that everyone pay themselves first before paying any additional bills each month. This is important to remember because those who pay their bills first will usually have nothing left at the end of the month to save for retirement.
Those who pay themselves first will have to be creative when paying their bills with what is left, and this process promotes better money management skills.
Putting all retirement eggs in one basket is not a good idea. Some companies will offer deep discounts on the purchase of company stock. What happens if the company goes belly-up? Some company stock purchases can be beneficial, but they should make up only one part of a retirement investment portfolio.
A good financial adviser from a bank, credit union, or other financial institution can help those looking to seek out good investment vehicles and will be well worth the money spent. It may be worth looking into whether your line of work can provide you special benefits.
For example, those in the armed forces can use advisers at institutions like Air Force Federal Credit Union to help them assess what kind of benefits they can get financially due to government regulations that allow for such benefits.
Think About Taxes
Tax-deferred retirement plans are among the most popular around. If a company offers a 401k with matching funds, employees have a great way to get a quick return on investment.
It is also a good idea to put some money aside in a Roth IRA or another account that allows for the tax-free accumulation of returns after saving with after-tax dollars.
Stay With the Program
Life has a way of happening, and many people fall off of the wagon and start to neglect their retirement savings. These people are likely to have a retirement that is less than wonderful.
While it might be difficult, it is imperative to stay steady with retirement investments for the long haul.
Those who start out young can do quite well when it comes to retirement. A small investment today can lead to big benefits in the future.
Those who fail to plan for retirement may be left relying on the government or their families to support them. The time to start planning for retirement is today.Facebook.com/doable.finance