The last few days, we have been talking about retirement, because of the enormous consequences that result from making one wrong move. One thing people always try to do is, time the precise time when to start saving for retirement, you often realize that there is always something that has to be done first, if it’s not driving the latest car model in the market, it will be buying the latest fashionable clothing items and designer goods. Believe me there will always be a reason not to start today, and that is why you will always find people investing in very risky investments in their 50s, because they have finally realised that retirement age is approaching, and they don’t have enough to even last them 5 years! So as you go about your daily business, just know at the back of your mind that a time will come when there will be no more income coming in, apart from the returns from your investments. Cindy Heller illustrates in the following article the issue of the right age to start saving for your retirement plan.
The only factor that people consider about their retirement plan is their retirement age, but they fail to consider other important factors, such as their present age, how long they will live, the investments already made, the benefits that the investments are supposed to yield, and the necessary income to support themselves after they retire. The mistake that most people make is start saving for retirement and investing at the age of 50 when they should be doing it at the age of 30.
What About Investments For Retirement?
The best ways to invest for retirement are bonds, IRAs, 401k, and pension plans. Bonds are a good idea because you can predict the interests they will yield over the years and they are not very risky. The 401k plans are protected against taxes, and are very important in retirement plans. Many companies match part or all of the worker’s investments in 401k plans.
There has been a decrease in company pension plans, because 401k investment plans are preferred. If you want to complement your retirement plan with a pension, you may have a hard time having the company match your investments.
Early Planning Saves Money And Headaches.
Individual Retirement Accounts are protected against taxes, and offer reductions in taxes year after year. On the other hand, social security is not reliable anymore for a retiree, since those who were born after 1970 will get it when they become 75. Likewise, those born after 1990 are not likely to get it at all.
The solidness of your retirement plan is essential, which can only be achieved if you start planning for it before you become 30. What would you say if I told you that there are retirees that cannot even pay for the medicines? Would you agree that it is important to calculate how much you are going to need to support yourself in the future?
Although money is an essential part of retirement plans, there are other aspects that deserve consideration, namely, post-retirement activities and life expectancy. If you want to determine these two aspects precisely, you should look for life expectancy and retirement calculators on the internet.
In order to determine the necessary income to support yourself after you retire, you must analyze you future expectations, and what you want to do. With a little planning, investing, and discipline, you will get the quality retirement we all deserve.