The longer that you save for your retirement, the better off you will be. If you haven’t done much (or anything at all), that doesn’t mean that you won’t be able to retire. However, you will have to live frugally and work with your financial planner to ensure that you will have some money during your retirement through effective retirement planning.
Here are some things that you can do to ramp up your retirement planning.
Have multiple accounts when it comes to your retirement funds. Not only should you be putting money away through your job, but you may also want to open one or two other accounts. You should have at least one IRA, if not more. The more accounts that you have, the more money you can save for the next part of your life. Others prefer to put their money in bonds and stocks so their money can grow until they are ready to use it.
Know what you can put into your retirement funds. The IRS only allows you to put so much money into your retirement fund each year, depending on what type you have. If you put too much in, you could face some penalties.
Make sure that you are putting as much money away as possible into your retirement funds.
Look into catch-up contributions. Catch-up contributions could help you, as long as you are over fifty years old. This allows you to put extra money into your retirement fund every year, without facing any penalties.
Simplify your life NOW! One of the best ways to be ready for retirement is to get ready for it. If you are thinking about buying a smaller home that is more affordable, you may want to do it now. The extra money that you will save will surely help you when you finally do retire.
If you realize that you are spending more than you are saving, you could start cutting back on those little things now so that, when you don’t have as much money coming in, you are already comfortable living with less.
It can be scary to think about retirement, especially when you don’t have a lot of money put aside for it. However, if you start setting up some accounts and putting money away, you will be better off than you are right now!
Contact Roberts Tax and Retirement Planning in Gilbert for all of your retirement planning needs. We will help you get ready to enjoy this next chapter in your life.