5 Pro Tips for Making Your Financial Plan for Retirement
Are you prepared for retirement? If not, you need to get your financial situation in order. From investing to debt management, there are key steps you can take now to set yourself up for success.
Read on to learn 5 pro tips for making your financial plan for retirement!
1. Establish Goals for Saving
Your financial plan should include monthly savings goals. While a common recommendation is to put away 15% each month, do what works for you.
Do you have lots of debt? If you’re staring down a mortgage or credit card debt, pay it off. You don’t want that debt following you into retirement.
And if you’re struggling to save money each month, consider taking on more work. You’ll have more energy to do this when you’re younger. And you’ll be able to invest some of the money and benefit from compound interest.
This could involve putting in more hours on weekends or at night. Or it could involve picking up a gig, like doing rideshare driving or dog walking.
2. Set a Budget
Budgeting is a critical step toward building a retirement plan. If you have a partner, sit down with them to plan a budget. Evaluate your monthly expenses and look for areas to make cuts.
Total your incomes to determine how much you can save each month. Don’t forget to budget for things like vacations or new cars, too. And reserve some money for an emergency account.
3. Develop a Long-term Financial Plan
Do you know how much money you need to retire? Sit down with your spouse and crunch the numbers.
Also, keep in mind that it will take time for investments to grow. Work with a financial expert to develop a plan for retirement. You want to get strong annual returns and minimize taxes.
4. Determine Investments
If your company has a 401k plan with matching, take advantage of it! If your company contributes 5%, that’s free money. Put as much money as you can into your retirement account each month.
Aim for an investment portfolio that includes a blend of stocks and bonds. Reduce the amount of risk in your portfolio as you age.
If you’re debating between a Roth or traditional IRA, for instance, ask financial experts for help. Visit www.thejerusalemportfolio.com for sound advice on investing.
5. Adjust Your Plan as Needed
Know that the plan you develop at age 40 might need some tweaking at 50. Typically, you’ll want to move your money into less volatile holdings as you age. But if you get off to a late start with saving, you may want to take on more risk.
Make a point of reviewing your plan on an annual basis. You may need to shift investments or start saving more money. It’s always better to know than to be surprised!
Plan for Retirement
Create a financial plan that works for you and your loved ones. You need to enjoy living in the moment while saving for the future. Invest money in retirement accounts, stick to a budget, and review your plan annually!
For more tips to build your financial future, check back for new articles.