Planning for your retirement is valuable at any age. Although there are many ways to save, every retirement plan can be broken down into three simple steps. Understanding the basics of retirement saving can help you get started or modify your current savings plan to gain the most benefit when you’re ready to leave the workforce.
- Set Your Goal
Creating a plan that will help you live the type of retirement lifestyle you want begins with calculating your financial needs in retirement. The best way to set your goals is to first determine your required monthly expenses, then add in the extra lifestyle benefits you want. If you aren’t sure how to calculate your target goal, a retirement planner can help you get started.
- Evaluate Your Options
There are many options available when saving for retirement. Choosing the vehicles that are best for you and maximizing their benefits will help you reach your goal without stretching your current funds too thin. Options such as 401(k)s, IRAs, and 403(b)s allow you to receive tax breaks on the money you put toward retirement, while employer matching plans can boost your savings even more to make each dollar saved work harder for you.
- Be Prepared for Change
Even a solid retirement plan is likely to undergo changes over time, especially if you start saving early. Additionally, your retirement lifestyle goals and preferences may change over time. As you near retirement, keep an open mind and understand that you may need to change your plans to reach your goals, such as diversifying your portfolio or working an extra year or two past your planned retirement age.
Your advisor at Financial Directions, LLC, can help you plan the path to a comfortable retirement. Whether you are just beginning to consider saving or are planning to retire soon, we can guide you toward the options that are just right for you. You can learn more about our financial services when you click through our website, or by calling us at (520) 408-7777.
