Who’s the oldest woman to ever live?
Jeanne Louise Calment lived for 122 years and 164 days. That’s a lot of golden years. Do you think her retirement plan made it easy for her to enjoy her time?
Now’s the time to secure your finances for your long future ahead. We’ve created this short, but complete, guide to help you make the best retirement planning choices.
Read on to learn how to invest for retirement, the right way.
Consistent Investments And Savings Work Best
Saving for retirement is a lot like any other long-term goal. Making consistent progress is the best way towards success.
Instead of hoping to save more in the future, find a modest amount that you can start saving for retirement right now. When you can begin saving a portion of every paycheck, you’ll be able to set up a retirement game plan.
For instance, let’s say you decide to save five percent of every paycheck for retirement. A few years into your career, you get a big raise and begin making hundreds of dollars more each payment term.
Soon that 5% will increase will turn into a lot more money without straining your monthly budget. It’ll be easy to build your savings as you make consistent contributions.
Steady and consistent investments like the ones on www.raremetalblog.com/augusta-precious-metals can also help move you towards your goal. The next step is to maximize investment opportunities through your job.
Taking Advantage Of 401K Match
Does your employer provide a 401k match? Then you should be saving as much as possible to maximize the 401K match opportunity.
Let’s say, for instance, that your company matches $0.50 for every dollar you invest. They’ll probably have a cutoff somewhere around five or six percent of your salary.
Whatever the cutoff is, choose that maximum amount as your contribution. You’ll basically be getting free money! You get a great return on your money just by contributing to your 401k each paycheck.
Retirement Planning Tax Implications
When you start a retirement plan, you need to consider all the tax implications. Evaluate what will work best for your financial situation in the future, as well as right now.
For instance, what tax bracket do you fall into with your income? What tax bracket will you be in after you retire?
Should you pay your taxes when you withdraw or at the front end? These are all the questions you should be going over with the tax advisor. Your bank may also have an advisor on staff that can guide you.
Don’t Ignore Long-Term Care Costs
When planning your investments, don’t forget to budget for the cost of long-term care. While you or your loved one may not need extensive care, it’s best to be prepared. The cost of hiring a nurse or living at a facility can add up fast.
It’s easy to spend $10,000 a month or more on nursing home expenses. By considering long-term costs in your retirement plan now, you’ll be able to have an abundance of money. You won’t have to be like many families out there who run out of cash within a year of being in the nursing home.
Talk to a financial advisor about creating a comprehensive plan. One that will keep your assets safe while also helping you budget for long-term care. You can also look into assistance programs within your state.
Saving And Investing For Health Care Expenses
When you turn 65, you can enroll in Medicare. However, similar to traditional insurance, Medicare comes at a cost. You’ll still have premiums and other medical expenses associated with your coverage.
Certain coverages won’t be available either. For instance, Medicare doesn’t pay for long-term care costs.
You should be budgeting around a quarter of a million dollars for out-of-pocket healthcare costs throughout your retirement. However, that number can go up by quite a bit if you have extensive health issues.
We suggest exploring a supplemental insurance policy that can help cover some of your medical expenses, instead of only relying on Medicare, looking to their advantage programs too.
Creative Ways To Save For Retirement Investments
Get creative with your income flow. One of the most creative ways to save for investment contributions is by becoming an extreme couponer.
There are a lot of fun blogs you can follow that will teach you how to coupon like a pro. Transfer over to every little bit you save from the coupons to your IRA. Before you know it, you’ll be transferring over hundreds of dollars to your IRA throughout your year, all from coupons.
You could also look into getting a credit card that offers cashback savings. As long as you use the card responsibly and keep up with payments, you can make money from your purchases. You can add the money you make through the cashback system to your retirement savings.
There are also a lot of cashback apps that have recently come out this year. They’re worth looking into; some of the apps will give you bonuses for staying at a hotel, dining out, or buying things at stores. Be diligent and put that bonus money towards your IRA.
Another way to save without doing extra work is by stashing away your tax refunds. If you qualify for a tax refund, why not add it right to your retirement?
You could put a big chunk of change into your 401k or IRA. You might even qualify for special tax breaks, which will help your refund grow in the future.
Understanding How To Invest For Retirement
Understanding how to invest for retirement means feeling good about your future. Now that you know a few investing tips, it’s time to speak to a financial advisor.
Reach out to a tax advisor or a financial advisor at your bank. Let them know that you want advice for retirement planning, and begin to set up a framework for your future.
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