4 Steps Guide To Plan Your Retirement
Having a great vision of what your retirement will be like is one thing
. Having a plan with solid retirement planning guide to reach your goals is another. Some people include Social Security as a large part of their future financial security. But if Social Security isn't around, or doesn't provide enough to cover your needs, then the responsibility is back on your shoulders. Planning for retirement and having proper retirement guide has always been important, but with the average person living longer, it's more critical now than ever before.
Thankfully, it's also easier than ever before. Today you have more financial resources and tools than ever before. Here is retirement planning guide to help you on the road to a secure future:
1.Figure out how much you'll need. Generally speaking, you'll need 60 70% of your current income just to maintain your standard of living after you retire. But if your expenses are above the average, chances are you'll need more. And there's always the chance that your expenses will change as you grow older. It's better to have much more money than you need than it is not enough especially when you're older and it's harder to make a living.
2.Figure out what's missing. If there's a gap between what you'll need in retirement and what you'll have when you retire, you need to know about it sooner rather than later. Your assets in retirement might include Social Security, a retirement plan from your old employer, a part-time job, or some other sources of income. But if that's not enough to cover your expenses, you'll need to take money from your savings just to survive.
3.Figure out what you'll need to save. There's no better day than today to start saving for your retirement. Figuring out how much to save depends on a number of factors, such as when you plan to retire, how long you expect to live, what sort of growth rate you can expect from your retirement savings & investments, and whether or not you want to pass money along to your children when you're gone.
4.Start saving! Once you've got your plan in place, you've got to work consistently towards that plan. In addition to cutting your current expenses as much as you can, you should look at the savings tools that are available to you, and take action in each area. If your employer offers a retirement plan, such as a 401(k) or 403(b), contribute into it. Even better if your employer matches some of what you contribute yourself! Roth IRA is another great savings vehicle, with tax treatments to meet your current and future financial goals. Fixed Annuities are another very customizable savings option to look into. In general you can put as much into an annuity as you'd like to. Payments can begin at some future time, and can be set up to last as long as you live, as long as your spouse lives, or for a set number of years. And still one of the most popular and the best of all options is cash value or whole life insurance. These policies not only provide a death benefit, but allow you to take out your earnings tax-free through a loan against the value of the policy.
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