There is no better time to start saying for your retirement than from the moment you start working
If you’re at least 25 years old, you probably don’t think very often about your retirement. You have a lifetime ahead of you and are focused on your dreams and goals to fulfill. However, it’s important that you know you’re at the ideal age to start planning your retirement. Plan, save, and invest. The sooner you start, the better! If you start saving and investing money from now, the growth will be greater than if you start later.
Here are 8 ways to plan your retirement to achieve financial stability when you retire.
1. Determine your goal for your retirement
Your retirement can be all you want if, from an early age, you reflect on your goal and plan accordingly to achieve it. If you want to retire early, you should set annual savings goals. If you want to have financial freedom but keep working after 65, the adjustments to the plan will be different. It all starts with what you want!
2. Have an emergency fund
A retirement account is useless if, when an emergency occurs, you need to withdraw funds from that account. Instead, open a savings account with a high interest rate. This will prevent you from having to apply for a loan or exceed your credit card limits, and will free you from paying high interest.
3. Solidify your credit
With good credit, you’ll be offered the best financial products and the best terms. This can save you a lot of money in the long run. Since without a credit history you won’t qualify for many credit cards, look for those specifically to start building your credit and always try to pay your monthly balance in full.
4. Save regularly
At your age, you probably don’t have as many financial responsibilities as you’ll in the future. So, try to save as much as possible, as your lifestyle allows it. Save everything left over after paying your expenses, until you’re left with little or nothing. This will help you create discipline for your future and grow your reserve.
5. Invest aggressively
Don’t only invest in safe financial products. Take risks! A retired person may not be able to recover from market downturns, but you can and should. These aggressive investments are the ones that will give you the most return.
6. Contribute to a 401k plan
Many don’t hear about the 401k plan until they start working. It’s important to contribute to it from the beginning of your professional career. If you are self-employed, acquire one under your business and start contributing. This plan gives you the opportunity to save without having to pay taxes until you withdraw it.
7. Acquire an IRA
An IRA account gives you a guaranteed growth of your money. It also serves as a savings account. When you reach the determined age, you’ll start receiving monthly payments for life! It’s an excellent source of income for retirement and, in your productive years, it provides great tax benefits.
8. Save for a property down payment
Even if you still don’t know where you’ll live or work in the future, start setting aside an amount of money to cover the down payment for a property’s mortgage loan. The more you can give in the down payment, the lower your monthly payments will be, which will increase your monthly cash flow and savings possibilities.
Ready to start?
At TOLIC, we want to help you reach your financial goals. Therefore, we offer you several retirement plans:
· Fixed IRA: Your investment grows with a guaranteed interest.
· Indexed IRA: Potential to increase profit based on index growth and with market downturn protection.
· Fixed Annuity: For more return on your money.
· Indexed Annuity: For further growth of your retirement savings.