Many Americans are not very good when it comes to planning for their retirement. Many have not done anything to build up funds and assets they can live on when they no longer work. How long will your retirement funds carry you in your “golden years?”
Today I’m going to share with you what you should NOT do when preparing for retirement, and what you SHOULD do instead.
Here’s what you should NOT do when preparing for your retirement, that could get in the way of you retiring comfortably, living the lifestyle you do now (or even better):
Retirement Tip #1 – DON’T avoid or ignore planning for your retirement now.
Put money in savings or investments that will support your lifestyle. Not investing in your future now could put you in a less than desirable situation when you’re ready to retire.
Retirement Tip #2 – DON’T estimate low for your needs.
This may put you in a position where you run out of money early, or you have to settle for a lifestyle that is less than what you desire. Don’t risk it.
Retirement Tip #3 – DON’T ignore retirement plans and vehicles that are tax-friendly.
With a self-directed plan like a Roth IRA, you may incur taxes up front, but your retirement payouts could be tax free.
Retirement Tip #4 – DON’T be scared and invest too conservatively.
A financial professional can help you find a reasonable balance between safety from risk and asset growth potential.
Now, here are 5 things you SHOULD do so you can get on the path to living the lifestyle you desire when you’re retired:
Retirement Tip #5 – DO figure out the amount of income you’ll need.
Set yourself up so you can live the lifestyle you want to live. It is wise to plan for a need that is from 80-100% of your income today.
Retirement Tip #6 – DO an inventory of the income you’ll receive in retirement.
Know exactly how much income you will bring in after you retire, including social security, pensions, savings, bonds income properties and investment dividends.
Retirement Tip #7 – DO leverage the right savings and investment vehicles.
You want to have vehicles in place that will produce the income you need, plus discretionary income for traveling, and doing the other things you want to do. Consult a qualified retirement planner to see which vehicles are right for you.
Retirement Tip #8 – DO know how much you can withdraw.
You will need money for your day to day living. To still leave your principle largely unaffected, a good rule is to consider limiting retirement withdrawals to 4% of your overall funds.
Retirement Tip #9 – DO save, save and save more now.
Right now is the time to start or continue saving for your retirement. Today, next month and every month is the time to save as much as you can, so you can build a substantial retirement fund.
No matter how old or young you are, planning for your retirement before you retire is of utmost importance to your quality of life in the future.
Take this advice seriously, and make a plan to get clear on how you will be able to live the life you want to live when you no longer work for a living.