Getting Ready for Retirement

Dated: August 19 2020

Views: 118

muldrowrealty.com

How to Get Ready for Retirement

For most people, retirement feels like a long way off. But, if you don’t start preparing as early as possible, you may find yourself in a place of financial insecurity when the time does come. To avoid this, consider implementing the following tips.

  1. Calculate your target savings. In general, it’s recommended that you save between 10 to 15 percent of your income for retirement. However, you can always use an online savings calculator to determine the amount you need to save for your specific needs and goals.
  2. Contribute to your employer’s retirement savings plan. Does your job offer a 401(k), traditional IRA, or Roth IRA? Sign up and start saving as soon as they allow you to. It’s recommended to set up automatic paycheck deductions and, once the money is in your retirement fund, don’t touch it.
  3. Take advantage of employee benefits. Many employers offer matching which generally requires you contribute a certain percentage of each paycheck and your company will then contribute a matching amount with funds of their own. They might also offer health savings or flexible savings account. By contributing to these accounts, you reduce your amount of taxable income, allowing you to save more money.
  4. Pay off your debts. Start by paying off the smallest debt first. Then look at other debts, such as student loans and car payments, and make a plan for paying those off incrementally.
  5. Reduce daily spending. Although this feels like a no-brainer, spending your money thoughtfully now can make a big impact later. Seek out areas of your life where you can make small adjustments - they pay off big after time.

Finally, plan your exit strategy. Begin looking at what your life might look like after retirement. Consider things you're good at and enjoy doing. Odds are, you can make money at it! Whatever you do, start planning today!!

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Kim & Andy Muldrow

Experience has taught us that everyone has a story and communication is key! Whether you're buying your first home or selling your third, you can feel assured that we will help you make well informed ....

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