Planning for Retirement: a Time Relatedc Review
Remember to discuss your plans with a financial planner before taking any of these suggestions. They will be able to help you chart a personalized investment course to see you through retirement.
You've heard the news, that we are about to enter a recession. Jobs may be lost, and belts will need to be tightened. During times like this, many people lose sight of the need for long-term financial plans. It is times like these, though that should heighten our awareness for the need to have sound financial goals and know how to achieve them.
And Social Security pensions are dwindling. As we live longer, governments are claiming that they do not have enough money for pensions. To save yourself from a Spartan existence during your twilight years you must have a plan.
It is more important to begin investing small amounts of money right away, then to try and save up a large amount. Remember that most retirement plans are built on compounding the interest, so the longer your money is in play, the more interest you will earn.
You can read the whole article to see all of the options available to you, or you can skip to the section that deals directly with your stage of life.
You are 20something: Your whole life ahead of you, who wants to think about retirement. If you want retirement saving to be as pain free as possible; you do! The decisions you make as you enter the world on your own will set the pace for the rest of your life. Work on becoming debt-free, pay down student loans, choose a cheaper car and do not party away all of your money. For people in this bracket experts agree that the best course of action is to use IRAs and 401k plans set with automatic contributions. If funds are taken directly off your check, you won't even know that you're missing anything.
30s: As you start to earn more money increase your 401k and IRA contributions, increasingly slowly is a painless way to improve your future position. Invest in blue chip companies with proven track records. Stocks come with a risk, but now is the best time to take chances. As long as you are prudent, you should be able to recover from any loses.
If you are 40 - 50: Before you panic, remember that you still have about 20 years to prepare your retirement fund. If retirement saving hasn't been a priority for you, you're going to want to hit your contribution limits on any 401k or IRAs you do have. Also don't rely solely on employer based plans; open up at least one private plan for yourself. Your 40s are a good time to resort your assets. Take an overview of your entire portfolio. If you have been investing, scale back your stock options to 80% of your assets, and reinvest that money into saver options like bonds. Finally, if you have been supporting an adult child, it may be time to cut the apron strings.
50s: It is time to look hard at your finances. What goals do you have, and how much money will meeting them require? Arrange to meet with a financial consultant who can help you to design a custom plan to assist you in meeting your goals. Find out if you qualify for any assistance and apply for all that you are entitled to. Hit your limits - contribute the maximum you are allowed. Understand that 65 doesn't mean you won't work again. Many people are choosing to stay in their jobs longer, or to take part-time positions elsewhere. - 23159
You've heard the news, that we are about to enter a recession. Jobs may be lost, and belts will need to be tightened. During times like this, many people lose sight of the need for long-term financial plans. It is times like these, though that should heighten our awareness for the need to have sound financial goals and know how to achieve them.
And Social Security pensions are dwindling. As we live longer, governments are claiming that they do not have enough money for pensions. To save yourself from a Spartan existence during your twilight years you must have a plan.
It is more important to begin investing small amounts of money right away, then to try and save up a large amount. Remember that most retirement plans are built on compounding the interest, so the longer your money is in play, the more interest you will earn.
You can read the whole article to see all of the options available to you, or you can skip to the section that deals directly with your stage of life.
You are 20something: Your whole life ahead of you, who wants to think about retirement. If you want retirement saving to be as pain free as possible; you do! The decisions you make as you enter the world on your own will set the pace for the rest of your life. Work on becoming debt-free, pay down student loans, choose a cheaper car and do not party away all of your money. For people in this bracket experts agree that the best course of action is to use IRAs and 401k plans set with automatic contributions. If funds are taken directly off your check, you won't even know that you're missing anything.
30s: As you start to earn more money increase your 401k and IRA contributions, increasingly slowly is a painless way to improve your future position. Invest in blue chip companies with proven track records. Stocks come with a risk, but now is the best time to take chances. As long as you are prudent, you should be able to recover from any loses.
If you are 40 - 50: Before you panic, remember that you still have about 20 years to prepare your retirement fund. If retirement saving hasn't been a priority for you, you're going to want to hit your contribution limits on any 401k or IRAs you do have. Also don't rely solely on employer based plans; open up at least one private plan for yourself. Your 40s are a good time to resort your assets. Take an overview of your entire portfolio. If you have been investing, scale back your stock options to 80% of your assets, and reinvest that money into saver options like bonds. Finally, if you have been supporting an adult child, it may be time to cut the apron strings.
50s: It is time to look hard at your finances. What goals do you have, and how much money will meeting them require? Arrange to meet with a financial consultant who can help you to design a custom plan to assist you in meeting your goals. Find out if you qualify for any assistance and apply for all that you are entitled to. Hit your limits - contribute the maximum you are allowed. Understand that 65 doesn't mean you won't work again. Many people are choosing to stay in their jobs longer, or to take part-time positions elsewhere. - 23159
About the Author:
If you are looking into financial planning you need to also consider your estate. The estate taxes impacts the least prepared.
posted by X - Men @ 3:09 AM
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