Retirement may feel like a long way off, but it’s never too soon to start planning for your financial future. Smart planning now gives you peace of mind knowing that you will be more comfortable once you say goodbye to the workforce. According to the U.S. Department of Labor, the average person in America is retired for 20 years, which means you need to start saving how. Keep reading to learn more about retirement planning and your financial future.
Set Goals
Saving money is its own reward, and will greatly benefit you once you reach retirement. Consult with a retirement planner to come up with a realistic goal for how much you want to save. Once you have this figure, you’ll be able to determine how much you should be saving on a monthly and yearly basis to reach your goal. Saving even a little bit each month will add up, so start thinking about your retirement goals now.
Participate In Your Employer’s Plan
If your employer offers some sort of retirement savings plan such as a 401(k), it’s a good idea to sign up and contribute as much as is feasible for you. Not only will you have the money you put away for the future, but your employer might contribute more and you can lower your taxes. You should also ask if your employer has a pension plan, and be sure you understand how it works and what would happen if you changed jobs.
Leave Your Savings Alone
Your retirement savings have a specific purpose: to get you through your retirement comfortably. As such, you should not withdraw your retirement savings before it’s actually time to retire. If you do, you could end up paying penalties and sacrificing interest and tax benefits. Talk with your retirement planner about what to do if you change jobs and how to start your own Individual Retirement Account (IRA).
Planning for retirement can feel overwhelming no matter how old you are, which is why Financial Directions, LLC of Tucson is here to help you every step of the way. Call us at (520) 408-7777 to start discussing your retirement goals with our team of financial experts.
