It’s never too late to plan for retirement but doing it early won’t hurt for sure. In fact, it is the best time to get started. It allows you to plan ahead, study your options, and grow your retirement savings. Gone are the days when your retirement money simply sits in the bank waiting for meagre interest. People nowadays are looking for ways to maximise their retirement funds and more and more are getting aware that getting a certified financial planner can make a lot of difference. But aside from getting assistance from a finance expert, there are other steps to make your retirement years more comfortable.
Here are some:
1. Automate. It’s tempting to skip or touch your retirement savings when budget goes out of hand. The best way to handle this is to automate retirement savings. See if you can make an arrangement with your bank to automatically transfer funds from your payroll account to a separate retirement account. Keep it untouched until retirement, or until you are ready to invest. Of course, set a realistic amount for you to still live comfortably in the present. Don’t go overboard especially if you still have debts to take care of.
2. Invest. Your retirement account is in its best form if it’s a combination of cash, bonds and stocks. Investing isn’t only for people with tons of zeroes in their bank account so don’t let the word scare you. Start learning the ropes of investing as soon as you have a decent amount of savings. Talk to a financial planner and make sure you start small, just to get a feel of how it works. Don’t put all your funds in a single asset.
3. Get retirement savings and pension plans. If these aren’t mandatory, then sign up for retirement plans at work and contribute as much as you can. Also, ask if you can upgrade your plan to get full employer contribution. Aside from getting a solid retirement plan, these retirement options often make your taxes lower, too. However, know everything you need to know about it especially if you migrate or change jobs.