Three Steps to Take to Make Sure You’re Retiring Comfortably
When you think of the future, what do you see? Do you see yourself living in a comfortable home with the freedom to travel the world and splurge when you want to? Or do you see yourself working your fingers down to the bone, even after you’re 80, still struggling to make ends meet?
No matter your age, once you start to earn income, it’s never too early to start saving for retirement. While most companies and jobs offer you 401(k) accounts, do they match the money you put in? Will it be enough for yourself and your spouse to live off of without worrying about expenses? Chances are, it won’t be, especially when you consider leaving plenty of room for unexpected expenses and long-term care. Fogel Capital Management in Stuart, FL, wants to help you prepare for a future full of possibilities and promise, so we offer you three essential tips to take into consideration for retirement planning.
Save as much as possible
While it might seem obvious, saving as much money as possible is key to a comfortable and secure financial future. This could be especially true because retirement means you would be nearing old age and senility. You would need a lot of help, care, and support to go about living your life to the fullest. For instance, if you retire by 60, chances are that you would already have gotten some ailments in the body, be it back aches or knee problems. In such cases, you would not be able to do your household chores every day, meaning that you would need to hire the services of maids from firms like Modern Maids (considered to be renowned providers of house cleaning Austin) to help you out. But to afford their services, you would need money. Hence, saving money from early on could be a wise decision–one that not every individual makes!
But it’s extremely crucial, which is why it’s our number one tip for retirement planning. Automated savings accounts are great ways to help with this if your bank offers one. When you make a deposit into your main checking account at your bank, a set percentage or dollar amount from that deposit will automatically be transferred into the savings account. It’s something you don’t have to think about or remember to do. Over time, you’ll be surprised how quickly savings build up. Some banks even offer interest on the money that stays in your savings account, further compounding how much you’re saving for retirement.
Another option for saving money is to start cutting back on unnecessary spending today, instead of waiting until retirement is creeping up on you. Start looking for things you’d be willing to give up now in order to have a better future where you’ll be comfortable. Maybe downgrade your cable package to get rid of channels you never watch. Or try to cut costs when you’re traveling by taking your own food and snacks and being willing to stay in cheaper hotels. Cutting out sugary foods or drinks here and there could also have a bigger impact on your budget than you may realize, not to mention help ensure you’re in better health later in life. Simply transfer the money you would have spent on sodas, snack cakes, or cookies into your savings account every time you go shopping and skip the sweets.
Whatever ways you’re able to save and cut back, you should attempt to do them. Even $10 a week can make a difference! After 10 years, that amount will have added up to almost $5,000, not counting any interest you may have gained on the sum if you put it into a CD account or other account that accumulates interest over time. You could even talk to a cfp near me to see what options there are for you when it comes to how you manage the money you have now for your later years. Saving is the safest way to ensure your future is financially protected and you’ll be well taken care of.
Work out a monthly budget for retirement
Another important step to take during retirement planning is to ensure you know how much you’ll need a month to live off of comfortably, with a good margin for unexpected costs and health care. There are many tools and sites available to calculate your living expenses after retirement. Planning in advance with these tools will make it easier to set a tangible goal while you’re saving for retirement. Once you have your monthly total allowance, make sure you budget in a way that makes sense and is practical, while also adjusting for economic inflation. Additionally, plan in advance for bigger purchases, such as buying real estate or a vehicle, for which you will need a large budget. You can also go through this article here to learn about car pricing structures and payment methods.
Leaving a large cushion of funds that haven’t been budgeted to be spent in your monthly budget is also a great idea, as it will serve as a safety net if you or a family member falls ill or to cover other unexpected expenses. Creating said cushion of funds can begin with reducing unnecessary costs by choosing a practical, and better cost-effective alternative. You could perhaps start by cutting down on energy costs by installing dimmers for lights or thermostats for maintaining HVAC efficiency. Maybe even consider switching from an electric furnace to a heating oil alternative as a long-term solution for better economy and savings. Should you decide to take that route, then there is much to be gained by consulting a fuel expert (like someone here on romeosfuel.com) on ways to attain better fuel economy.
Tip within a tip: Consider your assets when you’re budgeting and not just the assets that are concrete. Just because you’re retiring, it doesn’t mean that you won’t be able to generate income. Your hobbies and skills can be a great way for you to stay busy, whether it’s selling artwork or crafts that you make or working part-time for project or company you love, such as a flower shop or car store. It’s a great way to keep your life full and satisfying while supplementing what you saved during retirement planning.
Consult a financial advisor
Our final suggestion for retirement planning is to consult a professional and trustworthy financial advisor that will help you through the process and calculations. The sooner you choose someone, the better your outcome will be. A long relationship means you’re able to build trust with your advisor and allow them to help you with saving for retirement early on. A professional that’s well-versed in retirement planning with great references would be ideal. Together you can come up with various plans and contingencies to ensure that you’ll be living comfortably in your retirement. Make sure you carefully vet the professional that you choose so you know you’re getting a competent expert that will be honest and trustworthy.
When you’re saving for retirement, it’s important to remember that the earlier, the better. These are just a few of the steps that you can take to guarantee yourself a livable financial future. At Fogel Capital Management in Stuart, FL, we can help you with your retirement planning as well. Call today to discuss your retirement planning options.