Free Retirement Plan 10 Questions To Ask When Using A Planning For Retirement Calculator

Free Retirement Plan 10 Questions To Ask When Using A Planning For Retirement Calculator

Few Americans take as much time to plan for their retirement as they do planning for a vacation. This article “10 Questions To Ask When Using A Planning For Retirement Calculator” takes a look at the questions you should ask when planning for your retirement. There are additional resource links at the end of this post. Make sure an consult a financial professional for your specific situation.

Free Retirement Plan 10 Questions To Ask When Using A Planning For Retirement Calculator

Free Retirement Plan 10 Questions To Ask When Using A Planning For Retirement Calculator

10 Questions To Ask When Using A Planning For Retirement Calculator

There are millions of baby boomers who are getting ready to retire in the next couple of decades. There are also millions of others who are not part of the baby boomer group who are just getting started on their journey towards retirement. There are a number of things that you can do to help get started and make sure you are on track to achieve a comfortable retirement.

 

 

10 Questions To Ask When Using A Planning For Retirement Calculator

10 Questions To Ask When Using A Planning For Retirement Calculator #1. Save, keep on saving, and make sticking to your saving goals a priority

No mater what age you are it is never too early or too late to start saving. Making saving a habit can change your life. Start will small amounts, like $10 out of each check. Make sure and pay yourself first. You should work towards savings 10% to 20% towards your savings goals. Having 3 to 6 months in savings can be a great way to protect what you have in the event of an emergency. While it is never too late to get started the sooner you start the more compound interest can be your friend.

10 Questions To Ask When Using A Planning For Retirement Calculator #2. Be aware of what you will need during retirement

It is not cheap to be retired. Most experts will tell you that you will need around 70% of your pre-retirement income during retirement and for lower wage earners up to 90%. This means keeping debt to a minimum is key. Start by looking at a budget and examining which expenses you can live without and which you do not want to live without.

10 Questions To Ask When Using A Planning For Retirement Calculator #3. Take advantage of your employer’s retirement plan to the level of matching.

When you work for an employer who offers a retirement plan, especially one with a matching feature, you should take advantage of it. The best approach to take it contribute to the point that the matching stops. After that point, how much you should contribute depends on your individual situation. This is an easy way to setup an automatic savings plan. There are disadvantages and the largest being that your money is for the most part tied up until age 59 1/2. You are also forgoing tax on what is usually a smaller to pay tax on a larger number. Still it is hard to turn down free money.

10 Questions To Ask When Using A Planning For Retirement Calculator #4. If your employer offers a pension plan make sure you understand how it works.

Most employers have moved away from a traditional defined benefit or pension plan. Still if you are fortunate enough to work for an employer who has a pension plan you should take advantage of it. Make sure and get a statement on a regular basis and know what you options are if you stay or if you leave your employer.

10 Questions To Ask When Using A Planning For Retirement Calculator #5. Learn basic basic investment concepts

The way you save is an important as the amount you save. Certain things like inflation will impact your plans as well as the type of investments you use. Diversification  and your investment options are somethings you should be aware of and familiar with. As you age and get closer to retirement what you do and how you do it will need to be adjusted. The closer you get to retirement age the harder it is to recover from losses.

10 Questions To Ask When Using A Planning For Retirement Calculator #6. Retirement savings are sacred.

Emergency funds are for emergencies and retirement funds are for retirement. Make sure and keep them separate. Tapping into your retirement funds may be a move you will regret later.

10 Questions To Ask When Using A Planning For Retirement Calculator #7. Don’t hesitate to ask your employer to start a plan if they do not have one or find an employer who does offer a retirement plan.

Many times if your employer does not have a retirement plan they might not think it is important to their employees. Many employers are not aware of the different options available to them. If your employer refuses you should consider working elsewhere.

10 Questions To Ask When Using A Planning For Retirement Calculator #8. Invest in your own IRA or Individual Retirement Account if it is an option.

If you have dollars that are earned from employment which does not have an employer sponsored retirement plan you can contribute to an IRA. The amount you can contribute is up to $5,000 a year. There are two types of IRAs that you can take advantage of – a traditional IRA or a Roth IRA. Each is treated in a different way in regards to taxes. Also, the after-tax value of your withdrawal will depend on inflation and the type of IRA you choose. IRAs can provide an easy way to save. You can set it up so that an amount is automatically deducted from your checking or savings account and deposited in the IRA.

10 Questions To Ask When Using A Planning For Retirement Calculator #9. Track your personal Social Security benefits

Social Security pays benefits that are on average equal to about 40 percent of what you earned before retirement. You may be able to estimate your benefit by using the retirement estimator on the Social Security Administration’s website. For more information, visit their website or call 1-800-772-1213.10 Questions To Ask When Using A Planning For Retirement Calculator

10 Questions To Ask When Using A Planning For Retirement Calculator #10. Don’t hesitate to seek professional advice and to ask questions

There is help available from many sources. Talk to your employer or human resources representative, your bank, your union, or a financial adviser. Ask questions and make sure you understand the answers. Get practical advice and act now.

Disclaimer

Resource links

Free Retirement Plan: Retirement Plan Generator

Social Security Administration: Retire

AARP: Retirement Planning