It doesn’t matter how old you are, you should start thinking and planning for retirement so you can live comfortably in your golden years. For people without a plan, the thought of retirement can be stressful. However it doesn’t have to be. Look forward to your retired years with the helpful tips below.
1) Start Saving Early – In order to retire and live comfortably, you have to start early. Of course, starting early can mean a number of different things. If you’re already close to retiring and haven’t started saving for retirement yet, that just means you should start as soon as possible. You should set up a 401(k), Roth IRA or any other method of retirement as early in life as you can. The earlier you start, the longer your investments have to grow.
2) Diversify – You also need to make sure that you have a diverse portfolio. That means you want to invest in stocks, bonds, real estate and other different investment vehicles. Investing in mutual funds helps with diversification because you’re able to invest in a variety of companies in a variety of industries. It’s good to start diversifying as early in the process as you can.
3) Budget – It’s not surprising that in order to be able to plan for your retirement you have to be able to budget. You have to budget for right now. That means you have to make a financial plan that allows you to start saving money towards your retirement. Being smart with your money early on will make your retirement days much easier.
You should also think about a budget for your future. How much money are you going to need each month during your retirement? This is a difficult question, but it’s one you have to consider if you want to successfully plan for your retirement. Otherwise you won’t have a realistic retirement fund goal.
4) Review Regularly – Once you make a retirement plan, you have to keep reviewing it. Like a budget, your needs may change. While you may want to make long-term investments, that doesn’t mean you just invest your money and forget about it. Review your investments, your goals, your retirement plan and all other aspects related to retirement. Many experts suggest that you should review your financial needs at least every two years.
Stanford Federal Credit Union offers retirement planning assistance. You can call for an appointment or schedule a free portfolio review and analysis on our website.