A great retiremnt is a fantasy of most. That dream can become a reality. Are you aware of how to create the retirement of your dreams? Here are some ideas to help you figure out what you need to do.
Determine what your needs and expenses will be in retirement. Studies have shown that most people need around 75% of the income they were receiving before retirement. If you are in the lower tax bracket, you may need 90 percent of your income to retire.
Save early and save often. Even small contributions will help. Increase your savings as your income rises. The money you earn in interest will increase the amount available to you later, which can go a long way in retirement.
Many people are excited about retiring, especially when they’ve worked a long time. They think retirement is going to be a wonderful thing. Plan today to ensure your retirement is as great as you wish it to be.
Does the fact that you are not yet saving for retirement concern you? It’s not too late. Start today by looking at how much you could afford to save. If that amount isn’t very high, don’t fret. Any amount you can save will help fund your retirement.
Examine any retirement savings plan provided by your employer. If they have something such as a 401k type of plan, get signed up and add whatever you’re able to. Read all of the detail regarding it before you make a decision.
When you get ready to retire, take a look at areas of your life where you may be able to downsize. Despite the most careful planning, life may have some surprises in store for you! Unexpected big expenses, such as medical bills, can crop up at any time, but they can be particularly problematic during retirement.
Many dream about retiring and exploring all of the things they did not have time for in their earlier years. Time seems to go by more quickly as each year passes. Planning in advance for daily activities can help to efficiently organize and utilize your time.
Your IRA is a great place to invest “catch up” contributions when you hit 50 years old. You will have to abide by a limit that you can contribute. After age 50 that number goes up to approximately $17500. This is good for people that want to save lots of money.
To get a good feel for how much money you should be saving for retirement, plan the money you need based on money you spend now. It is probably safe to estimate that your living expenses will be approximately 80 percent of your current expenses since you will not have to pay work-related expenses, such as wardrobe, transportation costs, etc. Just take care that you do not spend a lot of extra money as you find new ways to occupy your free time.
Find a little group of people that are retired like you are. Mingling with others who are also retired is one way of spending your time. You will be able to do things with folks that share things in common. You need a good group that is there when you need them.
As retirement looms over you, get your loans paid off first. Mortgages and other debts can quickly eat up your monthly retirement payments. The cheaper the financial obligations are later on, the more you can enjoy your retirement.
Social Security
Social Security cannot be relied upon to pay for everything you need. Social Security is likely to provide less than half of your present income, which is not enough to live on. Most people need at least 70 percent of the pre-retirement income for a comfortable retirement, and that is 90 percent for those with low income.
Grandchildren could be one of the best things about your retirement. Your children may need you to help them with childcare sometimes. Think about all the things you can do with the grand kids to have fun with them. Do not provide full time childcare though.
Don’t touch your retirement investments until you are retired. If you take money out early, there’s a good chance you will lose interest. There is an early withdrawal penalty for taking money out before you reach the age of 59-1/2, and you could forfeit some tax benefits, as well. Use your retirement money after you have retired.
We have the expert advice you need to plan for retirement. This means you should take the tips you’ve learned here and put them to good use when all is said and done. Retirement can be great, but only if some planning is done.