8 Quick Tips for Retirement Planning

1) Start by determining your net worth

–The total value of your assets minus the value of your debts (things like the value of your house minus the value of what you still owe on your mortgage). You want this number to be positive, with your assets worth more than your debts. Don’t be disconcerted if that’s not the case. Even if you find your net worth is negative (as many people do), start there to figure out what you can do to make it positive.

2) Outline your retirement needs and think long term

— Retirement is expensive. Experts estimate that you will need at least 70 percent of your pre-retirement income – lower earners, 90 percent or more – to maintain your standard of living when you stop working. Take charge of your financial future. The key to a secure retirement is to plan ahead.

3) Evaluate the Pros and cons of Social Security Benefits

—Do your research depending on when you start getting social security It will drastically affect how much you will receive each month. Most baby boomers are eligible to receive full benefits at age 66. If you sign up before age 66, your monthly payments are reduced, and if you delay claiming up until age 70, your payments increase. “You may want to consider the risks for applying for Social Security and the benefit of delaying it beyond the full retirement age,” says Mario J. Payne, a certified planner for MJP FINANCIAL in Jacksonville,Fl.

4) A 401(k) is one of the easiest and best ways to save for retirement. 

–Contributing money to a 401(k) gives you an immediate tax deduction, tax-deferred growth on your savings, and — usually — a matching contribution from your company.

5) Save as much as you can as early as you can.

–Though it’s never too late to start, the sooner you begin saving, the more time your money has to grow. Gains each year build on the prior year’s — that’s the power of compounding, and the best way to accumulate wealth.

6) An IRA also can give your savings a tax-advantaged boost.

–Like a 401(k), IRAs offer huge tax breaks. There are two types: a traditional IRA offers tax-deferred growth, meaning you pay taxes on your investment gains only when you make withdrawals, and, if you qualify, your contributions may be deductible; a Roth IRA, by contrast, doesn’t allow for deductible contributions but offers tax-free growth, meaning you owe no tax when you make withdrawals.

 7) Building your wealth

— Working part time Continues the growth of assets during semi-retirement good investing decisions can also add to your fortune and yield a high return on your investments. Stocks, bonds, and CD’s are good place to start.

 8) Basic Estate Planning

–Start planning your estate now. So that way you are not leaving any burdens for loved ones.

  • Appoint a Power of Attorney
  • Write out a will
  • Create a living Trust
  • Get life insurance
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