Planning For Retirement


Schooldays are not any more the ‘golden days’ of life with all those competitions, exams, burning of midnight oil, then comes the professional life which is all about making money and recognition (but nobody seems to have time to enjoy it!). Retired life in true sense can be the golden period if you have planned for it. So what does it take to enjoy your retired life apart from peace of mind, a good retirement saving so that you can live independently with self-esteem. Some easy ways to make enough retirement savings are discussed below for ‘not so old’ people so that they can enjoy their retired life in true sense:Planning For Retirement

Be an early bird: The first and foremost tip is to ‘start early’. Best age bracket to start investing is 24-26 in which you can pay minimal charges and can reap maximum benefits. Research showed investing from an early age with nominal sum yields much more results than investing at a later age with a large amount.

Know your lifestyle and needs: Different retirement plans have to be carefully analyzed depending upon your lifestyle, daily needs, standard of living etc. If you are a high spender, with a good lifestyle you need to save at least 65% of your preretirement income.

Know about the government benefits: Do you know that Social Security (or the concerned government system as applicable) pays a decent sum ( 35-40% of your preretirement income) on your retirement?. Check the concerned websites for more details.

Invest into tax saving retirement plans: You can put a decent amount into a retirement tax-saving plans such that of an Individual Retirement Account to gain tax advantages.

Consult your employer: You need to find about the pension plan provided or profit sharing plans, if any. Consult the concerned person of your company to so as to have less tax deductions.

Economic factors: Consider important economic factors such as inflation, tax policies before planning for retirement. Your current monthly income will obviously not suffice in your retired life.

Keep your savings intact: Last but not the least, keep a separate saving for contingencies and health issues so as not to touch your retirement savings. This will help to increase tax benefits and interest on your amount. Keeping the amount intact and growing is the next big challenge after saving for your retirement!. Get started!

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