Financial advisors believe that it can never be too early to start planning for retirement. The sooner the planning starts, the more time a person has to gather interest on their investments. No matter how long it is until retirement, taking a time to learn can help a person prepare. Read on to get some quick retirement planning tips that can help workers reach and surpass their savings goals.
Setting the Date and Making a Savings Schedule
One of the first steps in retirement planning is to decide at what age one would like to retire. Setting a date will allow a person to create a timeline to ensure that they have enough savings once the time comes. Once a timeframe is in place, it’s best to do the math to figure out how much money is needed to live comfortably. A Financial Advisor in Yuba City, CA area, can help clients come up with a livable, attainable figure. Once there’s a number in mind, the client should review their finances to ensure that they can continue to make payments toward the goal.
Tips for Retirement Investment
To plan for retirement, the client must make sound investments with the potential for growth. To this end, it is best to make the maximum allowable contribution to a 401(k) plan. 401(k) plans are a popular retirement planning tool due, in part, to their tax-deferred status and employer contribution matching. A good retirement fund includes a mix of bonds and stocks as well. While it’s best to seek help from a Financial Advisor, clients should adopt a more conservative investment approach as their retirement date draws near.
Other Tips for Retirement
When planning for retirement, it’s important to observe that the average retiree’s monthly expenses equal roughly 70% of their pre-retirement spending. This figure is a good measurement tool when determining whether one has enough money to retire. Clients can consider taking on a part-time job after retirement to stretch their savings, and they should remember that planning isn’t complete once they retire. A Financial Advisor in Yuba City, CA can help clients keep an eye on their savings portfolios and move money between accounts as necessary.
