Mostly everyone looks forward to retiring but as you get older it’s important to start thinking about how to plan for it. Whether you think you’re ready for retirement now or still need to continue saving, it’s never too late to get where you want to be so that you can retire comfortably. Our finance professionals weigh in on the right path you should take to be retirement-ready by the time you reach 50.
It’s never too early to start saving for retirement
Saving up might not be something that everyone excels at but the only way that you’ll be able to save more is to spend less. Spending less now will allow you to live more comfortably in the future. Keep track of where your expenses are going. Put a good chunk of your paycheck into an untouchable account if you haven’t created a retirement portfolio yet. What is a retirement portfolio? A retirement portfolio or retirement plans, are investment portfolios that are put together to pay for retirement. They are made up mostly of stocks, bonds, mutual funds, etc. and can include real estate and hard assets.
There are a lot of retirement tools such as budget worksheets and online calculators that can help you keep track of where everything is going.
Let your career motivate you
If you find a job that you love, you might not want to rush retiring so quickly especially if you have a stable career that you enjoy. For some, making money can be a great asset and sense of security. If you want to stop working by the time your reach your fifties, it will take a lot more saving.
Empty nest syndrome
If you have kids who have flown the coop, you’re more likely to increase your 401k savings by less than 1% of pay according to a Boston College study. This might not be enough. Try increasing your savings by the amount that you were spending on dorms and school tuition. Starting at age 50, you can start funneling an added $6,000 per year to your 401k. IRA investors can add an extra $1,000 to total $6,500 per year.
Review your plan annually
The more that you become aware of your finances and fully prepare for retirement, the greater your chances of creating more advances. Think about going down this retirement planning checklist and write down anything else you deem important:
- Create a retirement budget
- Make a retirement income timeline
- Research the best retirement investments
- Discover your health insurance options
- Boost your emergency savings account
- Learn how retirement income is taxed
- Plug numbers into online retirement calculators
- Read a book on planning for retirement
Let Bodine Perry help you get your finances in order so that you can retire comfortably. The hassle of planning for your future can be intimidating, so don’t do it alone. Our team of professionals is available to assist you through every step of the process. Call (855) 851-8318 or visit bodineperry.com to get started on the path to retirement today.