Improving Your Retirement
Retirement planning is the process of achieving financial goals and decisions you make to lead life after retirement happily. It includes identifying the source of income, managing expenses, improving saving programs, and managing assets and risk. Retirement planning is a lifelong process where an individual starts investing and saving money accordingly. The individual determines whether a retirement plan is achievable or not. You can start retirement planning at any age, but you can make better retirement planning the earlier you start.
Stages of Retirement Planning
Here are the stages of retirement planning and how you can make your successful retirement planning:
Young adulthood (ages 21-35)
Young adulthood is considered between (21 to 35 years). So when we feel there is no need to invest until 60, you are wrong. Invest early as it is and will be more suitable for you and your family.
If you start investing at this stage, you can enjoy your retirement to collect sufficient funds and assets. If you save a small amount every month, you also get a significant amount on your retirement. This is possible as you are beginning at an early age, and with the compound interest, it becomes a significant amount.
Early Midlife age (36-50)
Early midlife is the most financially strained stage. You arrange finance for various purposes such as mortgage, insurance premium, and credit card debt. It is easy to save for retirement planning at this stage. But it would help if you took advantage of some employer-sponsored plans of any 401 (k). Ensure your family survives financially if you pull from retirement savings.
Later middle age(ages 50-65)
The time keeps running at this stage for retirement planning; however, it is never too late to make retirement planning. Making a catch-up contribution is another advantage of planning retirement at this stage. After 50, you contribute an additional $1000 a year to Roth IRA (individual retirement account) and $6,500 a year to 401 (k).
