Five Proven Retirement Planning Tips to Secure Your Future Retirement
Here are five proven retirement planning tips to help you secure your future retirement.
First, start early. It is never too soon to start planning your retirement strategy. The earlier you start, the more time your money has to grow through the power of compounding interest.
Then, calculate your needs. Try to guestimate how much money you’ll need to maintain your desired lifestyle in retirement. Consider factors like living expenses, healthcare costs, and travel plans.
It is very important to invest wisely. Choose the appropriate mix of investments for your retirement portfolio. While you are younger, you might invest more aggressively, but as you approach retirement, consider shifting some investments to more conservative options.
Next, maximize your retirement accounts. Take full advantage of retirement accounts like IRA’s and 401k’s. Make sure you are contributing enough to get any employer match, which is essentially free money.
Finally, plan for healthcare. Understand the ever-changing potential costs of healthcare in retirement. Consider investing in a health savings account (HSA) or long-term care insurance to cover these expenses.
Refer to this great article that outlines 11 tax deductions and credits you should know to reduce your tax liability. Check it out here! And talk to a financial advisor for personalized retirement planning advice.
Contact John Fritz, Private Wealth Manager at 724-935-0200
Common Retirement Planning Mistakes to Avoid
Committing any of the following key mistakes in your retirement plan can significantly impact the quality of your retirement. Steer clear of the following:
Starting your retirement plan too late may mean missing out of years of compound interest, creating the need to save much more later.
Avoid underestimating your potential retirement expenses like healthcare and leisure activities. These costs can lead to financial shortfalls.
Make sure to consider tax implications as they relate to your retirement accounts. Remember Uncle Sam gets his share sooner or later.
Make sure you consider inflation. If you don’t, it will erode your purchasing power over time.
Early withdrawals or taking money from your accounts too soon will trigger penalties and reduce your nest egg.
Conclusion
Start taking steps today to secure your future. By implementing these tips now, you can help to ensure that you have a solid foundation to enjoy your retirement years without financial stress. And watch out for the pitfalls to ensure a more secure retirement.
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