As we grow into middle age, retirement starts to loom on the horizon. It’s not a bad thing, and should be viewed as a milestone, but for many it tends to blindside them as time flies on by. After all, the older you get, the faster time seems to pass.
So, if time’s going to be passing by faster and faster, what can you do to prepare for your retirement?
It’s quite simple, but by keeping the essential, most important pieces of the puzzle in mind, you’ll stack the odds in your favor when it comes to retiring successfully, with health, wealth, love and happiness abounding.
Let’s get into the list:
#1 – Save, and Then Save Some More (Match Goals)
Savings is the name of the game when it comes to retirement. You’ll want to have a large chunk of money saved to be able to live off of and dramatically supplement your lifestyle.
More often than not, retirees are taking what we like to call hobby jobs, jobs that are part-time and that they thoroughly enjoy doing.
A hobby job can certainly help supplement your retirement, happiness, and satisfaction in life, but you’ll want to be saving as much as you can in your retirement account. From there, match that number up to your goals and save some more. It’ll make everything go that much more smoothly down the road.
#2 – Contribute to Your Employer’s Retirement Plan
Since you’re preparing for retirement, you’re more than likely still working right now (this is a great thing). Take advantage of your employer’s retirement plan as much as you can, especially as retirement grows closer.
Some employer’s even have a matching system, that will match your contribution. If this is the case, focus in and contribute as much as you can. Your tax savings will be higher, and you’ll be thanking yourself later, no doubt.
#3 – Learn About & Follow Basic Investment Principles
There are a few, basic investment principles that are absolutely vital to follow to get the most out of your money as you save it and grow into retirement age. Planning for inflation and the types of investments you’re going to make over the long-term is a huge component of success.
Having a basic understanding and learning about these principles will allow you to make much smarter and efficient long-term investments. Granted, the market is always fluctuating, so you’ll never have 100% certainty, but you will have more knowledge and expertise yourself, which always helps your decision making process.
#4 – Once You’ve Saved, Don’t Touch Your Nest Egg
Another overarching principle is to not touch your retirement account until your ready to retire. If you simply have to retire early, there are a handful of exceptions you can put into play (for example, section 72t allows for substantially equal, periodic payments from an IRA account, without the 10% penalty, as long as you meet the IRS-approved withdrawal requirements).
For more information on the early distribution process, check out our flagship guide here. Or, you can also check out the early retirement frequently asked questions series we have going, where we answer your questions. We’d be happy to speak with you for a free consultation.
Good luck with your retirement. If there’s anything we can do for you, please give us a call or email us today. We’d be happy to help you meet your goals and retire on your schedule.