Basic Retirement Planning Tips for Future Peace of Mind

January 10, 2020

Everyone wants to know that the money they have worked so hard for will be adequate, safe, and ready to access at retirement. By addressing the top retirement concerns, anyone can take the right steps for a successful financial future. With diligent research paired with the best planning and investing, future retirees can rest assured that they will reach their desired goals. For peace of mind, follow these basic retirement planning tips.

Start Planning Early

There truly is no time like the present to begin the journey to financial freedom. To some, this journey may seem overwhelming, but it is possible. With the right tools and the right team, anyone can take simple steps to establish retirement funds. There are many ways to invest, from IRAs and 401(k)s to more non-traditional approaches.

Many employers offer retirement plans, but those plans are not typically sufficient to sustain a full retirement. 78% of Americans are concerned about not having enough money for retirement.

The majority of people do not know how much they will need for retirement. Take into consideration several factors: retirement age, the standard of living, and expected retirement expenses (including needs as well as wants). There are many aspects to consider. Planning as far in advance as possible will ensure that you are ahead of the game rather than behind.

Invest Now

One of the greatest regrets people have as they get older is that they did not start investing or saving for retirement earlier in life. (Which is why it’s one of the most widely mentioned retirement planning tips!) The compound effect of savings over time is significant. The money invested begins working for itself as it grows throughout the years. Making smaller sacrifices now allows people to enjoy a fuller life down the road. In a culture that demands to have everything now, the wisest people take the steps to invest in their preferred financial future. Don’t wait to start saving!

Take Practical Steps

If an employer offers a matching program for retirement investments, strive to make the maximum match investment. If the company contributes up to a 5% income match, the employee should make at least a 5% income investment from each paycheck. This creates an automatic 10% investment at a lower cost to the investor. 

Setting aside a specific amount each month is another practical way to make a large impact. We recommend investing the maximum amount into an IRA (see current contribution limits here). There are advantages to each type of IRA (Traditional and Roth), so make sure and research the best option for each financial situation.

Diversify Your Funds

As far as retirement investments go, diversification helps minimize the risks involved. Not every fund or investment responds the same way to economic events such as governmental impacts to natural disasters. By spreading investments across multiple channels, funds are more stable and less likely to face an overall drastic decline. Speak with a knowledgeable and experienced retirement custodian to ensure you’re making the best investments for you.

Manage Your Account

Keeping an eye on how accounts progress over time is important to the health and growth of the funds. Of course, there will be fluctuation, but if something looks “off,” it’s worth looking into to make sure mistakes have not been made. Perhaps there is a shift that needs to be made, such as reducing the input into a certain fund and increasing an alternative account. As retirement approaches, people may desire to adjust the risk factors involved with current investment accounts to minimize the chances of loss.

Following these basic retirement planning tips and having a retirement plan in general is crucial. Look for additional opportunities to learn more about the steps you can take to begin planning for your future. The key is knowing the right partners who will help you find the best plan for you. A plan provides peace of mind and an assurance that a financially sound future is attainable.

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