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I read this article in the recent Coffeehouse Investor newsletter (www.coffeehouseinvestor.com ) and thought the group would also benefit from it.
Have you started your nest egg yet? If not, get it in gear. If so, continue the good work.
When should you start to plan for retirement?
The sooner you start, the more opportunities you have to accumulate a larger nest egg. If you start saving and investing for your retirement when you are in your mid-twenties, you will likely have plenty of time to reach your retirement goals. If you begin to save in your early thirties, don't fret - you still have time on your side, but you may need to increase your savings. Be sure to utilize all of the tax-deferred saving vehicles you have at your disposal, and pay special attention to how taxes may impact your future withdrawals. In fact, if you plan your tax reduction strategy now, you may be able to enjoy a significantly larger account by the time you retire.
Whether you are three months, three years, or three decades away from retiring, it is always helpful to have a road map to keep track of your goals. A comprehensive checklist should be reviewed periodically, but here is a short list to get you going.
1. Create an emergency cash cushion.
2. Plan for health care coverage.
3. Track your expenditures, or burn rate.
4. Consider the benefits of paying off any debt.
5. Ponder the emotional impact of your retirement.
6. Practice living on your retirement budget.
7. Meet with your financial advisor, at least annually. (Better yet, become your own financial advisor and eliminate many/most fees.)micharch
8. Review your asset allocation for any adjustments.
9. Determine the best time to start taking Social Security distributions.
10. Pick a date and plan a party!
Remember, you will want to start your retirement "bucket list," long before you leave your job, so that should be a part of the retirement planning process, as well.
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It's hard to plan to save. Every time I start, some emergency crops up and the money goes to that. I need to make more of an effort to do this regardless. Thank you micharch. :)
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It's hard to plan to save. Every time I start, some emergency crops up and the money goes to that. I need to make more of an effort to do this regardless. Thank you micharch. :)
I know the feeling, frazzledmom. I feel too that whenever I begin to get savings built up, something somewhere goes wrong. I read that life goes in seven year cycles alternating between good and bad stretches. All I know is I'm overdue a run of good luck. :)
Thank you micharch!
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7. Meet with your financial advisor, at least annually. (Better yet, become your own financial advisor and eliminate many/most fees.)micharch
That's the best advice of the lot! :)
That's a great post, micharch. Financial planning is as much fun as a root canal and I think that's why I procrastinate on such things. I should have done it by now. Thanks for the nudge. :)
Top Ten Reasons Why I Procrastinate.
1.