Start Planning Retirement
your retirement is something many people put off and put off thinking they will start next year or the next.
Then, all of a sudden, individuals are in their 40s or 50s and have no retirement money to speak of and then panic starts to sink in.
However, there is no need to panic because there is still plenty of time to do some
planning to get a retirement account into shape.
The things you need to do include coming up with a number you need for
your retirement, income sources during retirement, saving goals, making 401 k contributions, investing aggressively, and downsizing if necessary and eliminating all debt.
planning, the first thing you should do if you are worried about your retirement
income is to figure out how much money, realistically, you will need when
If you have no clue how to go about doing this then you need to go online and use a retirement calculators to help you get a clue. Then, you need to evaluate whatever sources of income you might have
when you retire.
These might include IRAs, 401 k, pensions, or social security.
Try planning very conservatively how much money you will earn per year
when you retire and then subtract it from the amount you need to live.
This will give you the actual number you need to save to live year to year in your retirement. Now that you know where you are going you will be able to set some savings goals and start saving.
let time get away from you, start setting a savings goals today and take them very seriously. You can even start today by clipping coupons or shopping store circulars.
Once you have
set your savings goals make sure that each month you meet them even if it requires making some sacrifices.
Then, start contributing the maximum to your 401 k or open one if you do not have one. This is especially important to do if your employer also offers a matching program. This will increase your savings significantly.
Also, during this time period start investing aggressively in mutual funds as well as the stock market. If you are not knowledgeable on these types of investments hire a financial advisor or stock broker to help you.
Next, if you are
planning buying a new car, have several houses, are paying high rent, or any other things of this nature then start downsizing immediately. Do not engage in any activity that increases your debt or causes you to spend the money you should be saving.
And finally, eliminate any debt you have. Do this as quickly and aggressively as possible because the longer you wait the more money you will have to pay. So, if you pay it off quickly it might be difficult, but it will allow you to save more money
in the long run.
author of Start Planning is Rud Wallace
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Article Start Planning was submitted by
Rud Wallace for publication.
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