Happy New Year, folks! I took a little hiatus from slapping the keys during the holidays. Unfortunately for you, I’m back at it. November through January are business planning months for most people, myself included and planning for the year always gets me thinking about the future. Specifically, how am I preparing for retirement? So, without holidays and concerts to inspire a locally-oriented post, read on to get a few tips on getting ready for retirement.
What Do You Do?
For most people, retirement feels like a long way off. But, if you don’t start preparing as early as possible, you may find yourself in a place of financial insecurity when the time does come. To avoid this, consider implementing the following tips:
Calculate your savings.
In general, it’s recommended that you save between 10 to 15 percent of your income for retirement. However, you can always use an online savings calculator to determine the amount you need to save for your specific needs and goals.
Find another income stream.
Invest, invest, invest. Crypto, the S&P, your local ice cream shop with the bomb sprinkles…I don’t care. Compound interest baby.The future starts looking a lot rosier when your money is working for you instead of sitting in a savings account accruing .25% interest annually. Cash flow is even better for a lot of people. Investment properties (think rentals, not flips – you’re no Chip or JoAnna Gaines) are a wonderful source of extra income that will almost certainly appreciate over time. Luckily for you, I’ve got just the agent to help you identify such properties. Make that money while you sleep, my friend!
Contribute to your employer’s retirement savings plan.
Does your job offer a 401(k), traditional IRA, or Roth IRA? Sign up and start saving as soon as they allow you to. It’s recommended to set up automatic paycheck deductions and, once the money is in your retirement fund, don’t touch it.
Take advantage of employee benefits.
Many employers offer matching which generally requires you contribute a certain percentage of each paycheck and your company will then contribute a matching amount with funds of their own. They might also offer health savings or flexible savings account. By contributing to these accounts, you reduce your amount of taxable income, allowing you to save more money.
Pay off your debts.
Start by paying off any high-interest credit card debt first. Then look at other debts, such as student loans and car payments, and make a plan for paying those off incrementally.
Reduce daily spending.
Although this feels like a no-brainer, spending your money thoughtfully now can make a big impact later. Seek out areas of your life where you can
And that’s it! Actually that’s far, far from it. But if you want to know more you’ll have to tune in next time. Or give me a holler. Or contact a financial advisor. That’s not a bad idea either. Hey,if you’ve made it this far – I appreciate you! Thanks for popping by and I hope you find these tips on getting ready for retirement useful. Check back weekly for more sometimes useful, often entertaining, and never requested real estate stuff from yours truly!