When we apply for a job, one of our first considerations is the retirement plan offered by the employer. We should be checking it over to see if it will be of adequate size and stability to support us when our working days are done. If it meets our standards, we’re able to accept the job confidently.
But sometimes the situation that sounds good when we’re 23 looks a little less promising when we’re 33. Many of us get that early-career scare after a few years when we wonder if we’re really going to have enough to retire comfortably. As a result, we end up doing a lot of soul-searching and number-crunching, hoping to reassure ourselves that we’ll be okay.
While it’s important to be in tune with the need to be financially prepared for retirement, we don’t need to worry. If you build a good strategy for retirement, you’ll be just fine, especially if you do it early in your working years. Incorporate these considerations into your plan.
#1 Get Expert Help
We live in a do-it-yourself world. We watch home improvement shows and decide to grout our own tile. We read up on natural cures and treat our own illnesses. We grow our own gardens, generate our own electricity, and on and on.
But managing our money is one of those areas in which we must count on experts. The complexity involved in forecasting returns, planning for tax implications, and scheduling annuities is best left to firms like Harlow Wealth Management, who can oversee client portfolios and keep them on track financially. Don’t make the mistake of being a DIY investor.
#2 Take an Active Role
Too many people take a passive role in their retirement. They let their contributions go in and maybe glance at an occasional report, but otherwise, they are cruising on the assumption that they’ll be okay.
They might, but what’s wrong with a little insurance? If you have the time and the expertise to generate additional income, do it. What you earn in your 20’s–when many people have fewer family commitments–can compound dramatically by retirement age.
Lots of other people are already doing it. They’re earning money by flipping houses, selling products, or providing services. Others are just getting part-time jobs and stashing the money in IRA’s. There is some kind of extra-income option for everyone. The key is to make sure you save as close to 100% of the money as possible.
#3 Manage Your Money Now
We all know that we should be making plans to save for retirement from the moment we start working, but good overall money habits are just as important. Spending wisely in a lifestyle that you can sustain financially is crucial.
The last thing you want to have when you retire is debt. Many times you’ll see ads for life insurance companies featuring senior citizens talking about making sure their families have money for funeral expenses, mortgages, and credit cards. Don’t let that make you think it’s okay to have debt when you retire. Barring major disruptions to income, it’s totally preventable.
Make every effort to be debt-free at retirement. Talk to your lender about your mortgage and design your payments to have it paid off by the time you retire. Don’t carry balances on credit cards. Their sky-high interest rates will be a major drain on your retirement income.
We all aspire to a relaxing retirement, with enough money to do the things we’ve waited for years to do.
Making that happen requires that you are wise in your earliest working years. You need to get help from people who understand retirement, earn extra money when you can, and set yourself up financially to have the lowest possible debt when you work your last day.
That combination will establish you financially in a way that will guarantee that no matter what particular type of retirement tools you have, you’ll be able to live comfortably and without worry.
So what are you doing to get ready for retirement financially? Share your thoughts and comments below.