Satisfaction with your lifestyle when you retire is never an accident. The sooner you plan for retirement, the easier it will be to retire well.
Even if you are not good at money management, financial planning is something that you can learn. If you currently have difficulty in improving your income, managing your expenses, and working with a budget, these are learnable skills.
You don’t have to plan your retirement finances alone. There are plenty of professionals who can help you shape a realistic plan. All you have to do is to get good at asking the right questions and then putting the advice you receive into practice.
Here, then, are five ways that you can take charge of your retirement:
Invest in burial insurance.
Although it may be uncomfortable thinking about what will happen to your family after you pass away, by thinking about buying burial insurance now, you
will help your family manage to cover your funeral expenses. If you don’t take care of this ahead of time, your family will suddenly have to come up with $5,000 to $10,000 for your funeral. For burial insurance policy help , speak to an insurance agent. They will explain the benefits of this term life insurance policy.
Increase your 401 (k) contributions
It’s always a good idea to work for a company that offers a traditional 401 (k) plan because this will allow you to secure a significant advantage when it comes to planning for your retirement. A 401 (k) plan lets you contribute pre-tax money toward your retirement. If, for example, you are in a 15% tax bracket, you can contribute $100 from your paycheck before taxes come out of your take-home pay. This is a simple way of setting money aside without feeling its impact on your monthly budget.
Delay receiving your social security for as long as possible.
Consider the idea of taking your Social Security later rather than earlier, in other words closer to the time you plan to no longer desire to work. Every year you can delay getting your payment until age 70, the more you will be eligible to receive. So, while it may be tempting to get your Social Security retirement benefits as soon as you are eligible, each year you defer receiving them, the more your monthly benefits will grow. In other words, your chances of retiring comfortably will increase when you delay receiving your Social Security retirement benefits.
Increase your earning potential.
The more you can improve your income, the less you will feel the need to take out your Social Security benefits early. If you are working for a company that does not offer you much opportunity for growth, it may be time to work for an organization that provides in-house training and career mobility. If you are in a career that does not pay well, then it may be a good idea to go back to school part time and get skilled up in something that pays much better.
Put your savings on autopilot.
Perhaps the hardest thing about saving money is that you find it difficult to pay yourself first after you receive your paycheck. Moreover, you are probably acutely aware of bills that you can catch up on or things that you would love to buy. By automating your savings, having a certain percentage of money from your paycheck sent directly to your savings account, you will have the opportunity to grow your nest egg without a second thought.
In conclusion, although it can be difficult to think about retirement planning early, this is the best time to organize your finances while you are still earning a steady paycheck.
Join our newsletter
Subscribe to get the latest "Engineer Your Finances" content via email.