You've heard the age old saying, "If you fail to plan, you plan to fail." That saying is as true as it gets when it comes to Saving for Retirement. I recently received a flier from Merrill Edge, 5 Steps to Help You Save Enough for Retirement. That flier inspired this post, 5 Steps to Help You Save MORE for Retirement; not just enough. Here are some ways you can start now to have a better retirement.
1. Envision how you'll live in retirement
Create a vision board for how you would like to live in retirement. Vision boards are real. They help you achieve goals immediately and in the future. Put down where you would like to live? At what age you would like to retire? Would you like to work during retirement? What hobbies would you like to do when you retire? Put all of that on there and constantly refer to it. Put it up at your home office or in your bedroom and constantly refer to it.
2. Make a specific number goal for your retirement
You don't want to just throw money at a retirement account without a specific goal. Create a number, refer to step 1. Put this number on your vision board and in your goals. Constantly refer to your retirement number and make adjustments as to putting in more to make sure you are on track. I like to use an online calculator to "true up" my retirement goals every once in a while. There is a good one here.
3. Increase your contributions
I have been working with retired people for 14 years now. I have never, not even one time, met with a person who has said they saved too much for retirement. They wish they would have saved less. Every single time, whether they have a hundred dollars or a million dollars, they always say they wish they would have saved more. Start with 10% of your pretax income. And when possible, put aside more. Try to increase that number to 11%, 12% or 15%. Depending on your current age and current amount in retirement, you might need to save more. Remember, ou can't just ignore the situation, it will not go away.
4. Cut back where you can
Find ways to cut back and to add to your retirement. Every bit counts. Maybe you go out to eat one less time per week, or you wash your car every other week instead of every week. Maybe you quit a bad habit and you apply the money you would have spent there, towards your retirement. Constantly refer back to step 1 and 2, this will help you keep the end goal in mind. If you are constantly referring to your plan, it will help you realize why you are cutting back on those items.
5. Diversify your account types
I am not allowed to give specific advice on where to put your money. I can say however, to diversify your money. And here, I'm talking about different accounts. A 401(k) is good, however, all that money will be taxable when you take it out. Look at other ideas such as individual IRAs, cash value life insurance policies, ROTH IRAs or individual investment accounts.
Remember, it cost less to solve the problem now, than it does to ignore it. Retirement is not going to disappear. And you can't just think that you are going to work the rest of your life. Thats not always your choice. I don't know too many companies who are looking to hire a 70 year old for their new position. They are looking for the young kid that they can pay cheap and work to death. Start now, save now, do everything you can to put money aside for retirement. I guarantee you that you will never think, "Dang, I saved too much for retirement." Aultium Insurance Services, LLC can help you accomplish your retirement goals. For more information, click on the link below.