Think about retirement plan can be overwhelming. You might ask:
- Am I saving enough?
- When I can afford to stop working?
- How long will my money?
Use the calculator for retirement, AARP, to plan your financial future and be able to retire when and how you want. You have options. This calculator will help you discover them.
TOP 10 WAYS begin now to prepare for retirement
1. Determine what your needs are when you retire.
Retiring is expensive. Experts estimate that in order to maintain their standard of living when you retire, a person need to receive the equivalent of about 70% of their income while working (almost 90%, or more, in the case of people with lower incomes ). It is very important that you determine what their future financial situation.
2. Learn about your Social Security benefits.
Social Security pays the average retired about 40% of their income before retirement. For no charge to their personal income statement and estimated benefits (Personal Earnings and Benefit Estimate Statement, PEBES), call the Social Security Administration at 1-800-772-1213.
3. Learn about retirement plan or profit sharing provided by your employer.
If your employer offers a plan, ask them to provide the estimated value of their services. Most companies will provide a summary of their individual benefits, if you ask. Before changing jobs, ask what will happen to your pension. Find out if the plan receive the benefits of their previous employment. And also determine if entitled to receive benefits from your spouse’s plan. For a free brochure on private pensions, call the publications hotline of the Employee Benefits Security Administration at 1-800-998-7542.
4. Contribute to a savings plan that is not subject to tax.
If your employer offers a savings plan that is free from tax, such as a 401 (k) participate and contribute as much as possible. Your taxes on these savings will be lower, your company may also contribute to your account, and automatic deductions from your paycheck facilitate the process.
5. Ask your employer to establish a plan.
If your employer does not offer a retirement plan, suggest instituting one. Many small companies can also establish simplified plans. Call the IRS (Internal Revenue Service, IRS) 1-800-829-3676 for free information about these plans.
6. Deposit your savings into an individual retirement account (Individual Retirement Account, IRA).
You can invest $ 2,000 a year in an IRA without paying taxes on interest earned until when he retires. If you do not have a retirement plan (or if you participate in a plan, but what you get is less than a specified amount), you can also deduct from their tax contributions to your IRA. Get a free copy of IRS Publication 590, which contains information on IRAs.
The advantage of starting early.
Start today! In the table below you will find the amount that would accumulate after 10, 20 and 30 years if you start saving $ 2,000 a year and your money will accrue 4% annual interest (above inflation).
0 – $ 2.000
10 – $ 24.012
20 – $ 59.556
30 – $ 112.170
7. Do not spend your savings.
Do not use your savings for retirement. You will lose much capital as interest and will not benefit from the tax advantages of this type of savings. If you change jobs, roll over your savings directly into an IRA or retirement plan of your new employer.
8. Start today, set your goals and take the necessary measures to achieve them.
Start as soon as possible. The earlier you start saving, the more time for your savings grow. Turn saving on your most important priority. Formulate a plan, follow it and set goals for you and your family. Remember that it is never too late to save. Start saving today, regardless of your age.
9. Consider basic investment principles.
The way you save is as important as the amount saved. Inflation and the types of investment you make are very important factors, and they depend on the total of your savings at retirement. Learn about how it is invested their retirement plan or savings account.
10. Ask questions.
The above suggestions will serve to start preparing financially for retirement, but should get more information. Talk to your employer, bank, credit union, or financial advisor. Ask your questions and make sure you understand the answers. Get practical advice and act today.
Economic security is not achieved by magic. planning, discipline and, of course, money is required.
Done- Less than half of people save specifically for retirement.
You can not retire with financial security unless you are truly ready. This involves face reality and start taking the necessary steps for both the present and the future.
Done- In 1993, people who could have participated in a 401 (k), one third did not.
Saving money for retirement is like giving yourself a raise. It is money that will give you the independence you deserve when you want.
Done- The average person lives 18 years as retired.
Today, 50% of people based on assumptions to determine how much will need when they retire. Do not do the same. Become well.
Save now and do not miss a minute!