Search:

Are You Ready For Your Retirement?

If your idea of planning for your senior years is playing the lotto, it is time for a reality check. Those years are going to be here before you know it. Here are some retirement planning facts and tips to prime the pump for you.

If your employer offers a tax-sheltered savings plan, such as a 401(k), sign up and contribute all you can. Your taxes will be lower, your company may kick in more, and automatic deductions make it easy.

Start early. The sooner you start saving, the more time your money has to grow. Put time on your side. Make retirement savings a high priority. Devise a plan, stick to it, and set goals for yourself.

In 2005, of those who had 401(k) coverage available, 25 percent didn't participate. If you are one of these, get enrolled and participate!

If you can, consider working a few extra years after your retirement age. It can make all the difference in your retirement income.

The average American spends 18 years in retirement. Yes, your money has to hold out that long.

You can start your Social Security retirement benefits as early as age 62, but the benefit amount you receive will be less than your full retirement benefit amount.

Your nest egg assets may seem large, but what about taxes when you start liquidating them? Do you have a tax strategy in place? If not, meet with a financial planner and accountant to deal with them.

Financial Planners say that a person needs about 70% of their pre-retirement income to live a comfortable retirement.

Consider moving when you retire. If you love in a location with a high cost of living, moving to a lower cost area such as Florida can make a big difference.

Select a target date for your retirement. Now assume you will need 70 percent of your current salary to live comfortably on that date. How much money will you need for 18 years of retirement and where will it come from?

An investment of $10,000 that earns 10% annually over the course of 40 years will amount to nearly $453,000 at the end of that stretch of time. Over the course of just 25 years, however, that same 10 grand increases to a mere $108,347.

Instead of blowing a tax refund, have the IRS deposit it directly into your IRA or retirement account.

Rip up your credit cards and pay off all balances. Once done, use the money you would have paid to credit card companies for your retirement funding.

If you plan to work after your retirement age, keep in mind that you might not be able to. Why? Your health could leave you. If that happens, will you have saved enough money?

When is it too late to start saving for retirement? It never is. People starting at 50 can still save a lot of money.

For most people, retirement is their biggest financial worry. The key to limiting this concern is to save every penny you can today. Time will make all the difference in your returns, so make sure you save, save, save!