Retirement Planning Advice — by the Decade

Many times we race through the details of our finances and just do what we need to do month to month.  It is easy to forget to focus on the important long term concerns such as saving for retirement.

Here is easy retirement planning advice for all phases of life. 

Retirement planningMake sure to have a plan of attack when it comes to saving for your retirement account.

Retirement Planning Advice In Your 60s

DO Revisit or create a solid budget and real retirement plan.  Assess all of your expenses, income sources and all of your assets — including housing. It is not too late to get everything in order.  Consider working with a financial planner who can optimize your wealth for maximum security.

One tip is to prioritize your needs over those of your children. Of course, you want to do as much as you can to help your children have a solid financial start in life, but by your 60s, your kids should be all grown up and able to support themselves. Many people in their 60s continue to struggle with determining how much they can afford to support a grown child. The clock is ticking, and even though you may consider working in your 60s, you won’t have much longer to save for your retirement.

DON’T spend quicker than your financial reserves dictate. Some people are under the assumption that as soon as they stop working, they think that their only option is to continuously tap into their savings until their cash runs out. But people in their 60s – whether retired or soon-to-be-retired – can still do things to ensure their savings last as long as possible. People can increase their income and stretch their dollar if it’s kept invested, rather than moving it predominantly to liquid cash.

In Your 50s

DO make key retirement decisions about health insurance coverage and long-term care costs. Now is the time to get educated on what your health insurance covers, in case you haven’t already. You’ll also want to look at your finances and discover what your potential long-term care fees will look like. It’s a bad idea to wait until your 60s to determine if your current health insurance coverage will meet your needs – at that point, it will get very expensive.

DON’T ignore your investing and savings goals. Your 50s are an important time to fully prepare for your retirement, so it’s not a good idea to assume that your savings and investments are still primed for your retirement. At this point in life, people in their 50s should be saving as aggressively as possible, and revisiting their investments to ensure that they are optimized for retirement.

In Your 40s

DO focus your investments on the right products. If you started investing in your 20s or 30s, you may have accumulated some wealth by the time you reach your 40s. These are usually your high-earning years, which makes it an ideal time to think about whether or not you’re investing in the best way possible. Goal-oriented investing can help enable you to invest each account according to your timeline and risk tolerance for every goal in your life.

Retirement planningCrucial financial mistakes can cost you a comfortable retirement.

DON’T splurge beyond your means. Just because your 40s are most likely your higher earning years, this doesn’t give you the green light to splurge on huge purchases, such as a boat or an extended vacation somewhere exotic. The only exception here is if your financial goals are being met, and your retirement account is being well taken care of.

In Your 30s

DO reassess your insurance needs. Major life events, such as getting married, buying a new house, and having children can be significant trigger points for analyzing whether or not your insurance requirements are being adequately met. To further protect yourself and your family, you may want to consider both short- and long-term disability insurance in case something happens to you that will affect your income generating ability. Look into group policies offered by your company, or else look around at various insurance providers to see what they can offer you.

DON’T cash in on your retirement savings to finance a home. Many Americans are tempted to use the money they’ve saved to date for their retirement to put towards the purchase of a house. By using this money now, you could potentially risk struggling in your later years to bring that level of money back up to par.

In Your 20s

DO get into the habit of saving and investing for your retirement fund. In your 20s, retirement is a long way off, and your 401(k) most likely isn’t going to be the first place you might think of to deposit your hard-earned dollars. However, by saving as early as possible, you’ll have a much easier time putting money away. By giving yourself as much time as needed to save up for retirement, you can get away with putting less away each month compared to waiting until you’re in your 40s or 50s to start saving. Start contributing a certain percentage of your pay-check that feels comfortable to you, and take advantage of an employer match if you are offered one.

DON’T ignore mounting credit card debt. Many young people get into the bad habit of delaying debt repayment until they’re older, thinking that they’ll be in a better financial position to pay off this high-interest debt. But this mindset rarely works – as you earn more money in the future, your expenses will typically increase too. Instead, break the credit-card-debt cycle and use that extra money you’re wasting in sky-high interest rates to save for your retirement.

NewRetirement Planner

Do it yourself retirement planning: easy, comprehensive, reliable

NewRetirement Planner

Take financial wellness into your own hands and do it yourself retirement planning: easy, comprehensive, reliable.

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