How to Get on Track with Retirement

The perfect plan for retirement doesn’t start when you have 10 more years to go until you retire. It takes strategy and time. As the saying goes, the best things are worth waiting for.

So, what does it take to create a solid retirement plan?

Create a plan.

First and foremost, think realistically about your numbers and your goals. No matter if you’re five years out or 30 years out – you’ll want to plan now for the things you’ll enjoy later.

If you plan on traveling quite a bit, taking classes at the local community or attempting new hobbies – you’ll need to factor those expenses along with your regular every day expenses.

If you’ve already started a 401k or IRA and want to start saving a little more, check out your local financial institution. Look at their money market accounts, savings accounts and certificates of deposits. By simply depositing money and letting it sit, you can earn dividends for the future.

Another great option would be looking into stocks or bonds. Investments don’t have to take a lot of money. You may pay $500 for something now that, in 50 years is a quarter of a million. Check out your options.

Start saving early.

Unfortunately, unless you’re Bill Gates, chances are unlikely that you’ll come into a large sum of income. So, your best bet is to start planning early.

Whether it’s simply setting a small portion of your pay check aside every month, investing in an IRA or 401k – the earlier you start the more you’ll save.

Invest in a 401k or retirement fund.

Many companies offer a retirement plan to their employees. In fact, some business offer their employees incentives for investing in a 401k. For instance, a price match – where the companies states they’ll match up to a certain percentage of whatever you’re investing. Say for example, let’s say you set aside 6% of your biweekly pay check, and the company matches up to 3% of that.

The best part – it’s done automatically. You don’t have to fuss with logging in every paycheck or figuring out the percentage, it’s all done for you.

You’ll be surprised by how much you save with even 3% by the end of the year.

If your company doesn’t offer this product, consider opening one yourself. It’s an easy and safe way to ensure that you’re saving money without having to worry about it.

To Medicare or not to Medicare?

Health insurance is a biggie. Make sure that you’re putting money toward Medicare now and that you know how it works. If you have questions, talk to your local health care provider to get more information. The more you know now, the better prepared you’ll be in the future.

Talk to a professional.

The best laid plans are done with a lot of research and more than a little help.

Start talking to your local insurance agents and brokerages to get their opinion on how to start saving for retirement.

They’ll walk through your current financials and give you tips on how to save and what to do differently. They’ll also give you options for additional investment and savings options.

It’s their job, let them do the work for you.

In the end…

You want your years of hard work to pay off; otherwise, what are you working for? The best, easiest and most convenient thing to do is to start planning as early as you can. Take into account the things you’d like to do once you retire, how much your everyday cost of living will be and add in enough of a buffer to cover you for emergencies. And, most importantly, do your research!