Retiring successfully may not be as hard as you think. Now, not worrying about retirement between now and the time you retire may be a different story. No one wants to work for 50+ years only to retire and have to significantly adjust their lifestyle and habits. Every person is different, but below are a few guidelines about retirement strategy we could all benefit from.
First, do not rely on the government to be your soul provider in your retirement years. Social Security does not pay enough for most retirees now and the future does not look any brighter. Even the government does not trust Social Security as it supplements its own workers’ pay and retirement with a 401k style investment program and its own pension program for government employees.
We know what you are thinking, “wonderful, so what am I supposed to do?” In order to supplement your Social Security check, and regardless of your current age, star with an Individual Retirement Account (IRA) or a Roth IRA. These tax deferred programs will have you, in essence, funding your own retirement and allowing your money to grow over time. One can only place between $5,500 and $6,500 each year into a Roth IRA, but such accounts can swell to well over a million dollars depending on the age at what you start and how aggressive you are with your share purchases.
Perhaps Roth IRAs and tax deferments may be a little nerve racking for you at this point? Speak with a Miami tax consultant or an accountant in order to discuss all of your regarding these matters. These individuals can show you rate returns and answer a number of other financial related questions.
In case you just plan on living through retirement frugally, cutting corners, and just going without; you are still going to need a plan. Having a nice nest egg and reduced living expenses should ease your retirement years. Some experts suggest replacing at least 60% of your pre-retirement income during your retirement years. Keep in mind, 60% is the bare minimum while 80% is the standard. We don’t know about you, but replacing 80% of our current income with savings, stocks, and pensions sounds like a difficult choir at best.
Always remember, it is never too early, or too late, to start thinking about retirement. Regardless of your situation, age, or income; saving with a retirement goal in mind will focus your efforts and have you sprinting over your retirement goals, not crawling.