Catching up on Retirement Planning

For many people thinking about retirement planning early into a career, they may seem it to be a bit morbid, feeling as if this beginning is just a means of preparation. As with anything, everyone’s experience varies wildly depending on life circumstances. It’s all too easy to get to a point where it feels like you’ve missed the retirement planning bus. The good news is that you haven’t. It’s never too late to get started, but it can sometimes be hard to reconcile that you’ve got to get started. As with any habit, the earlier you start the easier it gets, and starting later in the retirement planning game leaves you with a bit of an uphill battle. Not to fear, it’s never too late to get started. Here are a few tips to consider for getting your retirement plans underway.

  • Understand your current assets. Knowing where you are now is the first big step to figuring out where you’ll be when it’s time to retire. Draw up a list of everything you own and all of your stored funds so you’ll be able to understand what the foundation for your retirement planning is.

  • Tax breaks: Get them. A crucial step, and where an advisor will be an indispensable asset, is looking for ways to start saving money in accounts that aren’t taxed as heavily as normal savings accounts are. These include IRAs (individual retirement accounts) and 401(k)s. These are essential for maintaining a healthy flow of funds into a secure place that will be minimally affected by taxation.

  • Make a goal for your future assets. Knowing where you are now is an important step to figuring out where you want to be. Set a goal for yourself with as many milestones as you need and do everything you can to reach that goal. This includes:

    • Budgeting. Give yourself a strict budget. If you can live reasonably off of it (not extravagantly) then do so. Save extra for emergencies, as always, but living beneath your means is a good rule of thumb.

    • Consider working an extra year. Spending an extra year or two in the workforce can do wonders for your retirement portfolio.

    • Put your health in the spotlight. One of the biggest expenses you’ll run into in retirement is medical expenses. If you aren’t already there, take the time now to develop good health habits to ensure that you’ll be in the best condition possible for whatever may come.

If you’re late to the retirement planning game, don’t fret. There are countless professionals available to assist you. As long as you know where you are, know where you want to be, and get in touch with the right advisor for you, you’ll be in great retirement shape in no time.

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