How to Plan and Prepare for Retirement

When you’re young, getting older and retirement seem light years away. Then all of a sudden, there you are, older and wanting to retire. Therein lies the problem…because when you’re young, you don’t think you’ll ever get that old, so why prepare?

Many people find themselves in that situation, having failed to plan and prepare, they are unable to retire, they become part of the “working retired”, and quite frankly they’re very tired.

Obviously, the younger you start the better, but if you didn’t start sooner, start now…it may not be the best preparation you could have made, but it’s better than not preparing at all. The key is just get started.

Beginning your retirement plan…

You need to have a basic plan, which begins with estimating how much you will need to save in order to retire…that alone is quite a challenge, but Allstate Insurance has a great retirement calculator  that can help you determine how much you should be saving each month.

• In the beginning, your only plan may just be to start a retirement account (the sooner the better). There are a few ways you can do that.
  • Take advantage of a 401K program if your employer offers one. Because your employer may make a certain percentage contribution, it’s a great strategy to contribute as much as you can. If the amount you have to put into this plan is small, do it anyway, and then as circumstances allow, increase your own contribution. It’s great to watch your account grow and both you and your employer deposit into it.
  • Maybe your employer doesn’t offer 401K, so you can look for other opportunities to save, such as an IRA, a Roth IRA or CD’s (certificates of deposit)
  • You would be wise to talk with a Financial Planner who could give you some great advice on how to make your money work for you.
• Get out of debt and stay out of debt.
  • If you use credit cards for daily expenses, make sure you can pay them off every month.
  • If you have a mortgage, try to pay it off early, you’ll be surprised how much money you can save on interest, money you can then turn around and invest for retirement.
• Learn to live within a budget. It doesn’t need to be an extremely tight budget, but just because you have money in the bank doesn’t mean it needs to be spent. Living frugally helps you save money for your future.
  • Part of living frugally is avoiding impulse purchasing. In this day of online shopping and spending with “plastic” money, it’s easy to buy impulsively. Plan your purchasing and stick with your plan so you don’t blow your budget.
• Learn about your Social Security benefits, find out when you should apply for your benefits (it’s more important than you think), and what your retirement options are.
• Invest in a life insurance policy. With the right policy, you can consider your life insurance payment as a contribution towards your retirement.

For all of your Insurance questions or needs, Contact Whitcomb Insurance