Tips For Planning a Secure Retirement

Tips For Planning a Secure Retirement
The prospect of retiring should be thrilling. Perhaps you've been working toward this objective since you accepted your first job and it's finally near. But what next if you lack sufficient money saved for retirement? The last you want is working forever. But is there an option if your portfolio investments aren't sufficient to support you?

Fortunately, you can take certain measures if you're in this situation. Consider the following tips if you're seeking a secure retirement.

Save Frequently and Often

Money's time value can be extremely powerful. That's why saving even a small amount every year beginning early in your profession can impact your investments' value over the long term.

For example, if you saved $1,000 each year from the time you were 18, at an annual growth rate of 8% (stock portfolio mostly), the account could grow to about $350,000 by the time you're 60.

Understand Your Saving Choices

Capitalize on your employer's eligible retirement plan and save as much as possible. In the event that your employer doesn't provide a plan, ask about the likelihood of beginning one. Another option is putting money into Roth or Traditional IRAs.

Recognize your retirement needs

Retirement is costly. Experts approximate that you'll require 70-90% of your preretirement revenue to sustain your living standard once you stop working. Remember, the key to a secure retirement is planning.

Avoid touching your retirement money

You might be tempted to access your retirement assets for short-term objectives or to finance significant events, but resist this urge. The longer you can maintain the invested assets, the more you'll have access to meet significant objectives in the future.

Have an Emergency Fund

Sustain a savings account with about 3-6 months of expenses for unforeseen costs or events, for instance, medical costs or job loss. This fund can restrict the need to access longer-term investments.

While retirement planning is full of uncertainties, these measures will help you plan a secure one.