Are you in the process of planning for retirement? Do you wonder if you’re going to be ready as your retirement date grows closer?
Most people in the US want to stop working at age 62. If you are one of them, you’ll want to make a plan for what you want to do next.
When you’re preparing for retirement, there are a lot of factors to consider. Here’s a guide to help you get started on the right path.
Create a Retirement Plan
Your planning for retirement will be different if you are closer to your retirement age. If you have a longer timeline, you have more time to prepare. The best age to retire will depend on your choices.
Most advisors recommend that you plan to have 70 to 80 percent of your current income when you retire. You may need more or less, depending on where you plan to live and the lifestyle you want.
Chose a number to begin with, and review your current situation. Add up any pensions or other income sources you will receive when you retire. The difference is how much you will need to fund yourself.
Pay Off Debt
You can retire with a mortgage or credit card debt, but you’ll need less monthly income if you don’t have to make these payments. Consolidate your loans and refinance any high-interest debt into debt with lower interest rates. Double up payments where you can and reduce your spending.
Real estate-based debt is often tax-deductible. You may want to refinance your mortgage if rates are low and use the money to pay off higher-interest debt.
Diversify Your Investments
Maintain a balanced mix of bonds, stocks, and other investments to reduce risk. A diversified portfolio is safer than having all of your investments in one type of asset.
If one segment of your investments goes down, your entire portfolio is less likely to follow if you have a variety of holdings. Open a Gold IRA as one way to diversify your future income streams.
Max Out All Retirement Accounts
The best retirement tip is to increase your contributions to the maximum amount allowed in your 401(k), IRAs, or other retirement plans. Take advantage of any offers by your employer to match contributions to your plans.
Look at accounts you have with old employers and review your options. As you approach retirement, consolidate your accounts in one place to make things easier to manage.
Do Some Personal Planning
While it’s essential to have enough money to be comfortable when you retire, you need to think about what you want to do.
Consider your choices and interests or hobbies you might want to focus on. Your personal preferences will determine your lifestyle and where you will spend your time.
Enjoy Preparing For Retirement
When you understand the steps involved in preparing for retirement, you’ll be able to create a plan that covers all the bases. You’ll be glad you did your research when the time to retire finally arrives.
We hope you found the answers in this article. If so, be sure to use the simple search feature to check out more tips on retirement planning.