If you want to have a good retirement, the key is to start planning as early as possible. However, starting early is only one key factor to ensuring you have the funds you need to live how you want. Having the financial security you desire during your golden years doesn’t just happen without effort. It takes money, time, planning and commitment. It has been estimated that less than half of retiring Americans have the funds they need in order to live comfortably. To make sure this is not your future, below are some tips for ensuring you are preparing properly for your retirement.
Stick To Goals
The main key once you get started with your retirement planning is to stick with your goals. Saving consistently can be a very rewarding type of habit that you will see the rewards of down the road. If you are not good at saving or planning your retirement track, you can get help from a wealth management company such as Harlow Wealth Management. They will be able to work with you and set realistic goals to achieve in your retirement planning.
For some, it is best to start small and work your way up to bigger goals you set for yourself. The most important thing is to make saving for your retirement a priority. It is never too late or early to start saving.
Know Your Retirement Goals
Retiring can be a very expensive time in your life. You will no longer be earning a living wage and will need to use your retirement savings carefully so that the funds last. Many experts believe that most people will need at least 70-percent or more of their pre-retirement income in order to maintain their current living situations.
Make Use Of Employer Retirement Plans
If you work at a place of employment that offers savings plans for retirement, such as a 401(k), you should take this offer and contribute as much of your income to it as they allow. Typically, your contributions are made pre-tax. Over many years, you will be pleasantly surprised at how much of a difference the tax deferrals and compounded interest will accumulate.
Don’t Touch Your Savings
This can be hard for some people when they hit financially difficult times. However, if you end up taking some money out of your retirement accounts, you will lose things like tax benefits and the interest and principle amounts you accumulated. In addition, you may find you get penalties for withdrawing early.
These were just a few of the top tips to get you on the path to saving for your retirement. The key is to start as early as possible and stick to it. You will be surprised at how much money you can save if you are diligent about it.