Age Related Ways to Prepare for Retirement
Before designing any investment strategy it is highly recommended that you consult an expert in the field. This guide is aimed at helping you to best invest your money for retirement at every stage through life.
You've heard the news, that we are about to enter a recession. Jobs may be lost, and belts will need to be tightened. During times like this, many people lose sight of the need for long-term financial plans. It is times like these, though that should heighten our awareness for the need to have sound financial goals and know how to achieve them.
It is becoming more evident that citizens can not count on governments to subsidize retirement. At least not in a way that will allow you to live a lifestyle you would want. Who, after working for 45 - 50 years, wants to go back to living week to week? I don't, and you shouldn't have to.
It is a common myth that investing requires a large amount of capital initially, don't believe this. With some careful planning anyone, regardless of income or expenses, can begin saving for comfort in their golden years.
You can read the whole article to see all of the options available to you, or you can skip to the section that deals directly with your stage of life.
If you are 20 - 30: Start right away. Capitalize on your greatest asset - time. Choose safe, long-term investments that lock up your principal. This will make sure that you don't "temporarily" withdrawal funds to finance a weekend in Vegas. Options you may want to explore are IRAs (Individual Retirement Accounts) which provide valuable tax break incentives as well as compounding interest on your investment or if you'd prefer to have temptation removed you could opt for a 401k. A 401k is a savings plan that automatically takes deductions from your paycheck and can allow for the generation of a healthy nest egg later in life.
You are 30something: You are beginning to reap the rewards of your hard work with higher wages. Add to your 401k and IRA accounts gradually, slowly increasing contributions. Experts say that you should be investing about 10% of earnings by this point in life. Take the remainder of that 10% and invest in stocks. Stocks come with inherent risks, but prudence can help minimize risks.
You are 40something: Now is the time to become more aggressive with your savings. Ensure that you are filling your annual 401k and IRA allowances. You also want to shift non-liquid assets around. Remember to not place all of your eggs in any one basket. Begin to move stock investments into the bonds market for a greater level of security.
Over 50: Seek the assistance of a financial planner. They have experience and knowledge that will help you to reach your goals. Find out exactly what you are entitled to through the government and past/current employers. And be honest when assessing your financial picture. You may have to delay retirement, or look for other work if things aren't as you would like them. - 23199
You've heard the news, that we are about to enter a recession. Jobs may be lost, and belts will need to be tightened. During times like this, many people lose sight of the need for long-term financial plans. It is times like these, though that should heighten our awareness for the need to have sound financial goals and know how to achieve them.
It is becoming more evident that citizens can not count on governments to subsidize retirement. At least not in a way that will allow you to live a lifestyle you would want. Who, after working for 45 - 50 years, wants to go back to living week to week? I don't, and you shouldn't have to.
It is a common myth that investing requires a large amount of capital initially, don't believe this. With some careful planning anyone, regardless of income or expenses, can begin saving for comfort in their golden years.
You can read the whole article to see all of the options available to you, or you can skip to the section that deals directly with your stage of life.
If you are 20 - 30: Start right away. Capitalize on your greatest asset - time. Choose safe, long-term investments that lock up your principal. This will make sure that you don't "temporarily" withdrawal funds to finance a weekend in Vegas. Options you may want to explore are IRAs (Individual Retirement Accounts) which provide valuable tax break incentives as well as compounding interest on your investment or if you'd prefer to have temptation removed you could opt for a 401k. A 401k is a savings plan that automatically takes deductions from your paycheck and can allow for the generation of a healthy nest egg later in life.
You are 30something: You are beginning to reap the rewards of your hard work with higher wages. Add to your 401k and IRA accounts gradually, slowly increasing contributions. Experts say that you should be investing about 10% of earnings by this point in life. Take the remainder of that 10% and invest in stocks. Stocks come with inherent risks, but prudence can help minimize risks.
You are 40something: Now is the time to become more aggressive with your savings. Ensure that you are filling your annual 401k and IRA allowances. You also want to shift non-liquid assets around. Remember to not place all of your eggs in any one basket. Begin to move stock investments into the bonds market for a greater level of security.
Over 50: Seek the assistance of a financial planner. They have experience and knowledge that will help you to reach your goals. Find out exactly what you are entitled to through the government and past/current employers. And be honest when assessing your financial picture. You may have to delay retirement, or look for other work if things aren't as you would like them. - 23199
About the Author:
One common theme for a perosnal finances in retirement is the preservation of capital, a fixed annuity can help with this as it can't decrease in value.
posted by X - Men @ 5:44 AM
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