The average retirement age in the United States is 62.
How close are you to this magic number? If you’re super close to assume that you’ve got a solid retirement plan. And if you don’t, it’s never too late to start planning for retirement.
What if you in your early 20s? Perhaps you just finished college or landed your first job. If you’re anything like most young adults, you probably aren’t thinking about retirement. That’s a big mistake!
It’s time to start planning for retirement.
In this article, we’re sharing a couple of tips for retirement financial planning.
1. Start as Early as Possible
Do you think you’re going to save up more than a million dollars when you’re in your 40s or 50s?
This is why it’s essential to start making financial plans for retirement as early as possible. The earlier you start to save, for instance, the easier it will be for you to reach your retirement goal.
If you’re a young adult, it’s understandable that you might not be actively thinking about retirement. After all, there are several years ahead of you?
Well, it’s high time you changed that mindset. Time moves fast, so you don’t want to hit 40 and find out that you haven’t hit any milestones as far as saving for retirement is concerned.
2. Know Your Retirement Needs
It’s impossible to tell how your life will be looking at 62, but you have to figure out your retirement needs. The standard expectation is you will want to at least maintain the quality of life you’re living right now.
Once you have a rough estimate of the amount of money you’ll need to have a comfortable retirement, you can then start saving and investing.
If you’re unable to reach an estimate, find a retirement planning advisor. This professional can help you determine your retirement needs.
3. Investing Is the Key to Reaching Your Retirement Goals
Saving is a good habit to develop, but if you want to reach your financial goals for retirement, you have to think beyond saving. You have to develop and implement an investment strategy.
Here’s a simple illustration that proves investment works.
A person who invested $10,000 in Amazon right after its IPO has about $12 million today –about 20 years later. With just a $10K investment, the person has sorted out his retirement.
Saving, though, will help you raise the capital you need to make such an investment. For instance, you could resolve to save in the first 10 years, after which you can switch to investing.
A retirement planning advisor can also help you invest your savings wisely.
Retirement Financial Planning: Get Your Ducks in a Row
Retirement is on everyone’s horizon. How will yours be?
That’s a question only you have the power to answer. You also have the power to make your retirement as comfortable and exciting as possible. With this guide, you now have some of the information you can use for successful retirement financial planning.
Keep tabs on our blog for more tips and insights on retirement planning.