Successful retirement planning is a significant amount of work, and requires a tremendous amount of goal setting, planning and diligence in saving to actually make it happen. Being a successful retirement planner requires you to be future minded at a young age, to determine your projected income needs by examining the desired lifestyle you hope to live during retirement. Questions such as when you hope to retire, where you’ll plan on living, and the hobbies you’ll keep up during retirement all play a role in the amount of retirement income you’ll require. Many of your retirement goals and plans will be largely dependent on your current lifestyle, and the income you will have remaining during retirement. As a general guideline, the average person will need 20x their annual income to retire. Many investors suggest saving roughly 10% of your pre-tax income towards retirement to get yourself on the right track for a successful retirement plan.
Which Investments Should I Consider For My Retirement Plan?
There are many different investment vehicles that can be helpful for retirement planning, many of which depend on your age and your risk appetite as to whether or not they are an appropriate choice for you personally. The younger you are when you begin saving for retirement, the more flexibility you have in selecting riskier stock market based investments that offer a higher rate of return. The closer you are to reaching retirement the more conservative you must be in your investment choices. Some of the more common retirement investment and portfolio investments include: 401(k) plans, IRAs, Annuities, Mutual Funds, Stocks, Bonds, ETFs, and Cash investments. In order to determine which investment vehicles are best suited to your needs, significant research into your options is necessary. Be sure to pay careful attention to associated fees with each investment option. In some cases, the fees are so high that they can actually negate any earnings coming in from the investment.
The Earlier You Begin Saving For Retirement The Better Off you’ll Be
In order to take advantage of compounding interest, the younger you are when you begin saving for retirement, the more likely you will be to have a successful retirement plan. Even if you’ve already missed the chance to begin saving in your 20s or 30s, the best time to start saving successfully is right now. Just remember, the older you are when you begin saving for retirement, the more money you will actually have to save in order to retire with enough money to sustain you throughout retirement.
Examine Where You Can Make Cuts In Your Lifestyle To Save For Retirement
Often times, money is tight, and people are living paycheck to paycheck. It can be difficult to establish savings goals when there just simply doesn’t seem to be any “extra” floating around for retirement savings. One of the primary issues in retirement saving is outstanding debt. If you’re carrying around a significant amount of high interest debt that needs to be dealt with in order to free up money for retirement savings. It can be very helpful to put yourself on a budget, figure out where you can make some cuts, and begin dealing with your debt and setting aside money for retirement, in order to get your finances on track for a successful retirement plan.
For more information on successful retirement planning and on how to get your finances on track for a financially secure retirement, speak to a Redhawk Wealth Advisor near you today. Just remember, the longer you wait to make a change in your spending habits, the less likely you will be to implement a successful retirement plan. Don’t wait any longer, take steps towards a better financial future today.