With rising health insurance costs, lower social security payouts, and overall instability in our current world, it’s never been more important to prepare financially for retirement! Here are a few quick tips on what you can do now to prepare for the future. Please note that some of these tips work better if time is on your side, but if you’re already close to your retirement, fear not! Keep reading to find plenty of things you can do to prepare no matter what stage of life you’re in. Here are some quick tips on preparing for retirement.
- Set up a retirement account. To securely and safely save your money, you need some sort of account set aside for that purpose. You can use a 401(k) plan offered by your employer, which allows you to save a set amount of money from each paycheck. If your employer doesn’t offer a 401(k), you can still save your money with an IRA (individual retirement account). Many firms offer IRAs (stable, low-risk investment accounts with tax benefits). Do your research and choose a firm with low or no fees. Some popular firms that offer IRAs are Charles Schwab, Ameritrade, Fidelity and E*Trade. While you may be tempted to keep your money in the bank, a savings account is usually not a good option for retirement. The interest earned from even “high-yield” savings accounts can’t match inflation. So, even though you are making interest on your money, it will still be worth less over time. Investment accounts are the way to go when it comes to retirement. For even more information, check out 6 Ways to Help Your Aging Parents with Their Investments.
- Start as soon as you can. You don’t have to save a lot each month if you have many years before it’s time to retire. If you have fewer than 10 years, start investing as much as you can in your IRA or 401(k) each month.
- Budget for the future. It can be easy to live paycheck to paycheck now, but what happens when you no longer have a paycheck? Budget to spend less money than you make each month. Planning now means a more comfortable life in the future.
- Maximize your assets. Are you at a point in your life where you could downsize your home? Selling your home for a profit and moving into something smaller can yield a substantial amount of money. If you live in a desirable area, turning your current home into a rental property can also provide you with extra income that you can invest. Do you own a car you don’t often drive or could do without? Selling it will not only give you instant capital, but will also lower your insurance payments each month. The same goes for boats, motorcycles, and any other vehicles you may no longer be using on a regular basis. Do you really use that timeshare or vacation property? If not, that money may be better spent preparing for retirement.
- Look into Senior Living Communities. With ever-increasing healthcare and housing costs, Senior Living can be a great choice for the future. Considering a furnished apartment in a community might be much less expensive than maintaining a large, empty home. Stellar Living has many amazing senior living communities. Click here to find one near you!
Whether you’re just starting out or are planning to retire next year, you have everything you need to start preparing for retirement. We hope these quick tips on preparing for retirement helped. The most important thing you can do is begin!