Many individuals put off planning for retirement until the last minute, leading to a slew of issues later on.
If you’re one of those people, don’t worry – it’s never too late to start planning for your golden years. In this article, Family First Life – Strong Tower & Hammer Lane Consultants will give you tips on putting your retirement plan in order!
Save Early and Save Often:
The sooner you start saving for retirement, the better. That’s because the power of compound interest will help your money grow faster over time. If you start saving $200 per month at age 25, you’ll have almost $500,000 by retiring at age 65. However, if you linger until you are 35 to begin saving, you’ll only have about $250,000 – even though you’re contributing the same amount each month.
Research retirement savings tools:
Do you have a 401(k) through your employer? A traditional IRA? A Roth IRA? If you’re not sure, now is the time to find out. These are all essential retirement savings tools, and you’ll want to make sure you’re taking advantage of them.
Don’t worry if you don’t have any of these accounts – you can still save for retirement. You can open an IRA at most banks or credit unions, and you don’t need to have a job to do it.
Assess Your Savings
Once you know what kind of accounts you have, look at how much money you have in each one. It will supply you with a sound basis for determining how much money you’ll need to save each month.
If you don’t have any retirement savings, don’t panic! It’s never too late, and even a small amount of money can make a big difference down the road.
Set a Savings Goal:
It’s time to establish a savings objective now that you know how much money you have.
- Consider how much money you’ll need each month to cover your costs, including your mortgage or rent, food, utilities, and other bills.
- Next, add money from sources like Social Security or a retirement plan.
- Finally, don’t forget to account for inflation – over time, the cost of living will go up, so you’ll need more money to maintain your current lifestyle.
Once you have all this information, you can set a savings goal. Aim for a sum sufficient to cover your expenses for three to five years.
It’s not too early to start planning for retirement, and we hope that by giving you a few ideas on how to start, you feel more empowered to take the necessary steps.
Our team at Family First Life – Strong Tower & Hammer Lane Consultants in Fort Worth, TX, is here to help with any questions or concerns you may have about your specific situation. And don’t forget, if you want to explore our retirement planning services in more detail, please contact us!
We would be happy to chat with you about your unique needs and see how we can help make retirement planning a little less daunting.