Everybody wants to retire, but nobody wants to worry about it. The truth is, 64% of Americans will likely enter retirement with less than $10,000 in their funds. How long can you last on that?
Luckily, with the right tips, you can avoid that fate. The best part is, you can get started today! Let’s talk about some retirement planning advice to get you on the path to freedom!
Retirement Planning Advice: Check Employer Funds
First and foremost, the number one tip is to start as early as possible. If you’re young enough to search for a job that offers a pension after 20 or 30 years, or a good retirement plan, go for it.
Your employer likely donates a bit to your retirement fund and maybe matches what you contribute. Look into how much you have, how long it’s been going, and how much you contribute regularly. This is great for making adjustments.
If you don’t think this will be enough to last you 20-50 years after you retire, then it’s time to increase your contributions. You can have this taken right out of your paycheck so you don’t even notice it, or you can make contributions into the fund yourself.
Diversifying your investments is a great idea, and the options are endless. You can always invest in real estate if you’re handy and know how to manage a property. That’s a time-tested investment that will last you forever. You can also invest in a real estate investment trust (REIT) and receive dividends from the commercial property owners.
You can also invest in government bonds, which are a very safe investment with small interest accumulating on them. Another super safe bet is to have a separate savings account that you just try to build up steadily. This is beneficial for emergencies and other expenses, but leftovers can certainly be used for retirement.
Another option is trading stocks, which many find intimidating, but there are safer stocks out there. Yes, nothing is guaranteed, and no, you shouldn’t put your life savings into penny stocks. However, do you see Apple or Google disappearing any time soon? It’s a much lower risk investing in companies who already have their footings and prospects for continuous growth.
Pay Off Debt
The last thing you want is to reach retirement age and still have your mortgage or student loans to worry about. Start paying off your long-term debt to avoid this. Adding a couple hundred dollars to your mortgage every month could easily save you years on your loan!
One of the best investments you can make is to hire a financial planner. Planning for retirement is very complex and needs the right expertise, so making sure the job is done right will never be a bad thing.
If you’re in the Raleigh/Durham area and planning for retirement, go to olderaleighfinancial.com to find the best financial planning services.
The best retirement planning advice is to start now. If you already have, keep going, and keep trying to raise the bar every year! As your salary increases, so should your retirement savings. Keep up to date with our latest financial news, and set yourself up for a successful future!