Retirement planning can be intimidating and overwhelming, but it doesn’t have to be. Whether you’re 45, 55, 65, or older, retirement planning is never too late (or too early!). No matter what stage of life you’re in, developing a comprehensive retirement plan is key to ensuring your financial security in the years ahead. Let’s look at some of the most important steps you should take when it comes to planning for retirement.
- Start Saving for Now!!!
- Plan Ahead- Ensure you have the necessary insurance in place.
- Create a Budget- Knowing your cash inflows & outflows is the first step to creating a financial plan.
- Invest Wisely- Selecting the right investment strategy based on your risk tolerance, time horizon, and goals is key to your financial success.
- Bringing it all together- Now that the basics are down, it is time to start implementing your financial plan.
If you want a more detailed breakdown of how to start planning for retirement at any age, be sure to watch this video.
1. Start Saving Now
The sooner you start saving for retirement, the better off you will be when it comes time to enjoy life after work. Good savings guidelines often involve setting aside 10-15% of your income each month into a dedicated savings account like an IRA or 401(k). If you plan on funding a child’s education, you will need an additional 2-5% monthly savings per child. If you’re in your 50s, 60s, or older and just beginning to save for retirement, consider maxing out both 401(k) and IRA contributions.
2. Plan Ahead
In addition to saving and investing money for retirement, it is equally important to plan for potential unforeseen events, such as illness or disability, that could affect your ability to work once retired. Make sure that you have adequate health insurance coverage so that any medical costs associated with these events will be covered without putting a strain on your finances or savings accounts. Additionally, consider purchasing long-term care insurance so that if needed after retiring, long-term care will not deplete all your savings before it has had a chance to grow over time due to its earning potential from investments made during younger years of employment.
3. Create a Budget
Creating a budget is key when it comes to retirement planning. Take a close look at your income, expenses, assets, and debts to determine what kind of financial picture you have. Begin by tracking your income and expenses to see where cuts can be made or where more funds can be allocated toward savings. This will help ensure that your money goes towards the things that matter most while also allowing room for leisure activities. Once all expenses are accounted for, establish monthly goals for yourself so that you can actively monitor progress throughout the year.
4. Invest Wisely
When investing funds earmarked for retirement savings, it is important to consider factors such as age, risk tolerance, and investment goals to construct a portfolio tailored specifically to your needs. There are a variety of different investment vehicles available, from stocks and bonds to mutual funds and ETFs and Managed Accounts and annuities. Investing can also help grow your nest egg over time; however, you should consider consulting with a professional advisor before proceeding with investing decisions.
This video explains some of the ways I can help you pursue an investment strategy that is right for you and your family.
5. Bringing it All Together
Working towards retirement security involves setting goals early and taking steps to pursue them. It also means having the proper insurance in place, so your finances will be able to support the non-affected spouse should you have health issues.
No matter how old you are when beginning to plan for retirement, taking action now is essential to secure a comfortable future. By committing to saving regularly now, creating an appropriate budget, and investing wisely in the future – older pre-retirees will find themselves much better prepared come retirement age!
Lastly, don’t forget to consult with a financial advisor with any questions or concerns you have – they can provide personalized guidance tailored towards helping manage those long-term objectives! With these steps in place, anyone can start on the path toward a successful retirement at any age. Start planning today!
It is possible to have financial security in retirement, no matter what age you start. If you are not sure where to start or want to have your existing plan reviewed, schedule an introductory 30-minute retirement strategy call by clicking here.
The opinions voiced are for general information only and are not intended to provide specific advice or recommendations for any individual. All investing includes risks, including fluctuating prices and loss of principal.