5:35 pm - Friday December 15, 2017

It’s never too late to start a retirement planning- Here’s the tip

Current Retirement Confidence Survey as per Employee Benefits Research Institute reveals retirement readiness to be all-time stumpy. Only around 14% adults are confident about living comfortably when they retire while 60% just have a mere saving of $25,000. Not able to save easily is one of the biggest mistakes when planning retirement. A tough job situation is understandable, but if you are in a job you must strive hard to save a minimum of 10% every paycheck. Planning retirement is a subject that is much discussed and it is a lot more than IRAs and 401(h)s.

 retirement planningDilemma of today’s generation

The younger generation faces a lot of difficulty dealing with their retirement situations and they need solutions that are unique and designed carefully. You might have a longer life line but less social security and pension benefits after retirement. One needs a stronger retirement base that supports you for longer, healthier and more active lifestyle.

This is the time when you can really plan and over the past, retirement planning was never such a big concern. Your retirement planning will answer your questions like how much investment you need. When do you need to start? Is it the right time for you to begin with? Is your spending on retirement planning affordable?

Increase your financial intelligence by planning retirement during mid-career

It is ideal to plan your retirement during the mid-career when you are within your 20’s and 30’s and would mature few years before the retirement. The duration of the planning would depend on your needs as some prefer to retire in 30’s while some prefer it in 70’s. It is a two-fold planning, first is to grow enough support for retirement and next is to make your financial intelligent more profitable and smarter. Your planning is the 20’s is all about building assets and improving financial skills, one has to be careful during this period as this is the beginning point. There is time before the actual retirement to benefit.

Here are few steps that would be beneficial to your saving process during the 20’s:

  • Building a stringer financial intelligence- This is the learning phase where you need to get in touch with advisors to learn about personal finances and investing. Studying courses from investment masters can help you learn how it works, you get to know what will work for you and what will not. This will help you in hiring smart managers for investment advice. This is vital as the returns that you get on the asset are a strong determinant of financial security in comparison to the savings ability.
  • Open an IRA- Did you know that most people can save money on taxes by opening an IRA? You are allowed to contribute up to $5,500 annually if you’re under the age of 50 or $6,500 if you’re over 50. Opening an IRA account is a win-win for you in terms of your financial situation and retirement planning. You may be able to incorporate the money as a tax deduction for this year and you are making a contribution towards your retirement. While there are some restrictions in regards to IRA tax deduction and income level, the majority of people can deduct the amount that they contribute from their taxes. It’s an easy way to lower your tax bill and save for retirement. Free IRA rollover guide such as thegoldrushexchange.com helps you in knowing more about the gold IRA retirement planning and how it can benefit you in long run.
  • Keeping accurate records- One habit that you need to learn during the mid-career is of keeping records. Managing finances is no less than managing a business and maintaining records is an important part of it. Keeping a log of what your expenses are and whether you are spending enough for your retirement or not. Investment records help you to monitor your assets and help you organize your spending.
  • Do not raid the retirement account- This needs special attention, you should never raid the account that you have kept for your retirement to meet your daily needs. If short of funds, look for a position that is unsuitable and towards a different opportunity than using the retirement savings. Touching that particular account will solve your economic difficulties for the time being but will pose a problem in future. The idea is to think long-term, either you choose between delaying gratification today or build a future for a lifetime.

Similarly, it is up to you to make your choice between the mindless financial rot claiming financial intelligence or find an advisor who can work out your long-term financial goals.

Author Bio: James Carter is a renowned advisor who works for the benefits of community and offers advice on annuity, life insurance, LTC insurance, retirement planning and retirement services. With a passion of writing, he writes as a guest writer to serve you with financial security.

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