Have you planned out your golden years? The sooner you start financial planning for retirement, the better.
As you may know, the earlier you start, the more substantial your retirement fund could be. But compound interest is not the whole story.
Retirement Planning 101
In simple terms, retirement planning is every preparation you make for life after you stop working for money. Since you will have no salary, but still have expenses, you will need to save money, or create investments that will keep on paying after you retire.
Leaving retirement planning to chance is one of the biggest financial mistakes you can make in life. The earlier you start planning for your retirement, the better prepared you will be.
Defining Your Retirement Goals
The most important thing you have to do, is to decide how much money you will need to retire comfortably. Calculating how much money you need may be difficult, and if you find troubles, you may want to work with your financial planner to set a goal.
Achieving Your Financial Goals for Retirement
Compound interest is your friend when you build your retirement capital. For example, putting aside a hundred dollars each month could be worth more in retirement if you invest it at your 20s than waiting to invest it in your 40s.
It’s a good idea to start a 401(k) or 403(b) plan as soon as you land your first job. These plans create a tax-advantaged retirement fund paid for by your employer, who withholds some money from your monthly payroll. The more you contribute to your plans, the more your employer will be able to contribute as well.
Additional retirement savings plans include Roth IRA and regular IRA. These pay off well in the long run, even with a moderate amount of investment.
Insurance for Your Retirement Years
Finally, you should not neglect life insurance and disability insurance. These will make sure your family is secure if something happens to you and you cannot meet your financial goals.
As you grow older, you should also look into long-term care insurance, which could help pay for some medical costs associated with advanced age.
Looking For Retirement Financial Planning? We Can Help!
When it comes to retirement financial planning, you are not alone. Here at the Kelley Financial Group, we offer comprehensive wealth management services to help you achieve your financial goals and realize a more financially-efficient lifestyle.
Contact us today to find out how you can benefit from customized wealth management and financial planning services!
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*This information is not intended to be a substitute for specific individual tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.