There are all kinds of retirement planning advice out there. Some of it is good and some bad, so it can be challenging to sift through to find what’s best for you. At Help You Retire, we want to provide you with some retirement planning advice that we believe everyone should listen to.
Understand your timeline
Not everybody is planning to retire at the same age. Most people are shooting for the traditional retirement age of 65 years old because of the maturation of retirement savings accounts. However, some might want a few extra years to save and aim for retirement at 70 years old, while others want to retire early, at 55 years of age. Know your timeline and plan accordingly.
Have a plan for retirement
Everybody has something they want to do during retirement. Whether that’s hanging out with grandkids, golfing every day, or seeing the world, you’re going to need money to do it. Your plans during retirement will greatly influence the amount of effort you’re going to need to put into saving and how much you need to save. Someone who’s not planning on doing much more than staying home and enjoying time with their significant other won’t need to have nearly as much saved as someone who wants to travel.
Don’t put off estate planning
It’s important to protect your money. Not only will you need to protect your wealth for your family after you pass, but it needs to be organized in a way that you won’t lose it if there’s an emergency. Meet with an estate planner right away to ensure that your wealth is safe from circumstances that arise unexpectedly.
Start saving now
It’s important to remember that you can reach a point where it’s a little late to save for retirement, but it’s never too early to start. Whether you’re contributing to a 401(k) or setting up a Roth IRA, you should start saving for your retirement sooner than later. Regardless of how long you have before retirement, meet with a financial advisor to learn more about retirement savings plans, how you can benefit from each, and which is right for you.
Take advantage of employer match
It’s become more common over the years for employers to contribute to a 401(k) rather than paying out a pension. Learn about how much your employer is willing to match your contributions and take advantage of them by maxing it out. Employer 401(k) contributions are essentially free money, so it’s an easy way to double how much money you’re putting into your savings each month. Even if you have a hard time matching the amount, make sure that you’re contributing some money every pay period to ensure that you’re not missing out on anything.
Don’t depend on one account
Saving with a single retirement account can feel like you’re doing your due diligence with retirement planning. Although, it’s important to remember that the IRS puts a cap on how much money you can put into your 401(k) or IRA. Maximize your savings by diversifying your savings across multiple accounts, so you’re not shorting yourself in the future.
Meet with a financial advisor
You don’t have to go about planning for retirement by yourself. One of the best pieces of retirement planning advice we can provide is to meet with a financial advisor right away to get started building an effective savings plan. Our team at Help You Retire recommends that you meet with a retirement expert at OWLFI. They have a team of advisors who can help you identify the best ways to save for your future.