At WIFE.org, we don’t think retiring smart has to be complicated. A few good habits can make the difference between working a part-time job in retirement to make ends meet or spending more time with your grandchildren and taking a cruise each year.
Here are three simple things you can start doing today to get on the right retirement path.
Start Saving Now
One of the biggest road blocks to an abundant retirement is the mindset, “I’ll start saving for retirement as soon as I pay off my credit cards/get a raise/insert excuse here.”
Your biggest asset is time. The earlier you start saving for retirement, the more return you’ll get on every dime you tuck away. The growth of your investments will make your retirement savings even more valuable, through the miracle of compounding. Give it a few decades, and the results of compound returns can be staggering.
Max Out And Automate
Several investment vehicles exist to help you save for retirement. Your employer might offer a 401(k) plan that allows you to save a portion of each paycheck on a tax-deferred basis. Many employers will also match their employees’ contributions up to a certain percentage, which can really supercharge your savings. If your employer doesn’t offer a 401(k) plan, you can choose to invest in your own IRA or Roth IRA, which each have their own benefits and drawbacks.
The more money you can save each month, the harder your money can work for you. To make sure that saving becomes a part of your monthly routine, we suggest automating your retirement contributions. Your 401(k) is automatically funded from each paycheck; if you contribute to an IRA, . you can set up monthly electronic withdrawals to your IRA or Roth IRA. Your automated retirement strategy will be hassle-free and worry-free!
Protect Your Future With Insurance
We can’t predict the future, but we can prepare for it! Nothing can knock you off the path to a stable retirement faster than an unanticipated injury, disease, or accident. What would happen if you had a stroke tomorrow and needed in-home care and rehabilitation? Do you have adequate insurance to protect you, or would you have to dip into your retirement savings to cover your costs?
These important insurance products can protect your retirement savings if anything should happen to you:
- Health insurance
- Life insurance
- Disability insurance
- Long-term care insurance
- Follow these three suggestions to make your retirement as easy as one-two-three!