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Planning For Retirement: What Are Your Next Steps?

August 28, 2020
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When to Start Retirement Planning
There is not enough talk about retirement. When a person is young she does well to start putting money away for retirement. The power of compound interest can be exponential if a person can begin to invest in retirement in her twenties. When it comes to retirement, the idea is the sooner the better. If a person were to just invest $100 a month from the time he was 20 until the age of 60, he will have more than a million dollars. Even if a person begins to invest in his thirties or forties, he will still reap huge benefits. Even though sooner is better than later, it is best to start investing as soon as a person begins to work.

Where to Start Investing
In several western countries, debt can be a huge problem. Since that is the case, a person does well to get out of debt before beginning to save for retirement. This can be a difficult step, but with determination, discipline, and tenacity it is an attainable goal. After getting out of debt, a person does well to invest around fifteen percent of her income. The best way to start is by investing in a company's 401k plan. This is free money, so everyone should take advantage of these plans. After those plans are maxed out, invest in growth stock mutual funds or ETFs. Each person has to do his own research when it comes to the best choices for investing. Some people decide to work with a financial advisor, and this can be a smart move. There are other money-savvy individuals who decide to invest on their own through online investment companies. Regardless of the path that a person decides to take, investing is the only way to have a sufficient amount of funds saved in time for retirement.

Retired and Financially Free
Apart from just saving for retirement, there are other savvy things that a person does well to do in order to be financially free in her golden years. These things include paying off her home, investing in a rental property, and obtaining passive income. A person does not need to be rich in order to have a good retirement plan, he just needs to make a plan and follow through. By making savvy investment decisions, even a person with a low income can be a millionaire by the time he retires.