As we work through our adult lives, we are aware that it is important to set aside money for the future. Retirement savings gives us the funds we will need to cover future expenses after the paychecks stop coming in. During our work lives, it often seems like there’s simply not enough money to both cover current expenses and to set aside for the future. Retirement planning, then, becomes a world of uncertainty and even fear. Fear not – by creating a financial strategy now, you can take charge of your future. A financial strategy provides a roadmap, allowing you to save for retirement while covering your current life expenses. In this guide, we’ll offer tips on establishing a financial strategy that works for your retirement needs. First Step: Planning A solid financial strategy for retirement begins with planning. It is a good idea to lay the groundwork for the future by thinking about expected and unforeseen expenses after retirement. Some of this depends on your retirement goals, such as if you plan to travel, have health concerns that may need medical care, or simply want to relax and enjoy your free time. Other aspects of the planning process include:
The planning process is perhaps the most challenging part of creating a financial strategy. Thankfully, there are retirement planning professionals who can help. These experienced professionals can help you pinpoint your financial needs and goals now and well into the future, and can guide you toward savings accounts and strategies to build retirement wealth. Second Step: Establishing Retirement Accounts Now that you have identified your financial goals, explored what you might need in terms of funds after retirement, and established a will or trust, the next step is to set up retirement accounts. There are many choices, and the earlier you complete this part of the process, the better. Among the many retirement savings choices are:
Set up the accounts of your choosing, naming beneficiaries who will receive the assets when you pass away. Once the accounts are set up, you can begin funding them. Having trouble finding the extra money to fund your retirement accounts? It can be useful to look at your current expenses to identify areas where you can cut back. Freeing up funds in this way is a time-honored solution to create savings. If your employer offers a retirement plan, enroll in it – many employers offer matching contributions to the accounts, helping you to build value relatively quickly. Third Step: Review You’ve done your planning and you have started saving money for retirement. What’s next? The final piece of the financial strategy puzzle is review. Our financial needs and our goals change over time. By reviewing our current situations and our changing retirement goals, we can adjust our plans to meet those goals. Here, the services of a retirement planning professional are invaluable. Set up an annual review of your retirement portfolio, your budget, and your legal documents. With your planner’s help, you will be well on your way to a comfortable and stable financial future. Source: originally found on Tumblr Creating a Financial Strategy for Retirement Planning
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