You need to take some time out and plan for your retired life; however, life is very busy and can be overwhelming at times and you may not feel like you have time to do any planning. You have work, family and your social life to all balance. In the midst of all that you have going on, you need to prepare for the future. The planning you do now will be able to help you reach your retirement goals and allow you to keep the lifestyle you want in retirement.
Below are a few recommendations to make reaching your retirement goals a bit easier:
Assess Your Retirement Fund
Take a look at your retirement fund. How much is in it? Then calculate how much you will need to make to officially be able to retire. If you don’t plan to retire for a long time from now, you can calculate a ballpark figure. You should then calculate what you need to save a year to reach your retirement goal.
This is the most important preliminary step to retirement planning. If you find you won’t be able to reach your retirement goal with the money you’re saving, consider additional methods that can help you save more money. Some ways include lowering your expenses and eliminating debt.
Track Your Retirement Fund
You should track your retirement fund yearly to check your progress. Run a retirement report at least one time a year to see where you are in regards to your goal. If needed, make adjustments to your plan as your situation changes.
Be sure to have a sufficient life insurance policy that fits your needs. It is a good idea to sit down with a life insurance specialist to figure our what your needs are and what type of policy is best for you. Make sure to review your policies at least one time every year. It’s also important to understand that your situation can change with the occurrence of a significant life event. with these changes, you may need to revisit your life insurance policy.
From an investment standpoint, a diversified portfolio is a good idea. You don’t want to put your entire retirement plan into one basket. In the case that something happens to that basket you don’t want to have to start all over. This can damage your retirement dreams all together.
Consider hiring a retirement financial planner. They can help you pick how to properly invest your money based on your financial objectives, age, risk tolerance, and time. This can make a significant difference.
Look At All Your Retirement Saving Alternatives
There are a number of alternatives which could help you save for the retirement of your dreams. Here are 3 things to think about.
- Contributions are pre-tax and they help directly lower your taxable income. They also increase on a tax-deferred basis. This means that you will not pay taxes on the profits until you withdraw the money.
- IRAs are another terrific way to save money for the long run. Some income limitations and other limitations apply to be able to subtract the donation or to contribute into a Roth IRA. So ensure you are deciding on the best IRA for your circumstance.
- Health savings account (HSA) offer excellent tax advantages for out-of-pocket healthcare expenses.
Increase Your Knowledge
We have learned from a young age that knowledge is power. Make sure to stay educated on all the ways you can save for your retirement.
Increase Your Income
This may take some time and hard work. If you are concerned about not having sufficient income to put towards savings, think about how you can increase your income. You can get a part time job, get a new job, work towards a raise, or invest money in real estate.
Lower Your Spending
Find ways to lower your spending. Living below your means can help you save money for your retirement
Lower Your Taxes
Find ways to lower your taxes. Contribute to flexible spending accounts (FSA), if provided by your company, for paying health and dependent care costs on a pre-determined basis. Estimate the amount of withholding allowances you need to maintain on your W-4 using a withholding calculator.
Increasing your retirement funds does not happen overnight. If you take small steps you will see overtime the benefit it has on your retirement fund. There is no better day to start than today to make these changes.