There aren’t many people that think too carefully about retirement at the moment. People tend to want to live in the “here and now” instead of the “future and then” and while that’s nice for your current lifestyle, the days may be long but the years are short. Before you know it, you’re getting your retirement watch and a meal for your long service and then you’re stuck with a bunch of free time that you have no idea what to do with.
Saving for your retirement can take your entire life – however long that may be – but you should plan to be living well into your 90’s which means planning your finances to stretch you that far. The good thing is that investing in your golden years doesn’t have to be overly complicated. You want to move ahead into financial security and the faster you do that, the more secure your retirement years will be. By following the five simple rules below, you can sit comfortably when your retirement years finally arrive, knowing you have enough to keep you secure.
Start Early. You may not be thinking about the future right this second, but you really should be. The more you set aside now, the bigger your returns will be later. Starting in your mid-twenties can feel rather organized, but this is the best way to behave when it comes to setting cash aside for your retirement.
Save, Save, Save. Ideally, you should be putting 10% of your earnings every month into a savings account. You can either let it sit there, or you can get some advice about investing it somewhere for a long-term investment from regulated Forex brokers. These guys can help you to work out what to do with your stack of money, so it’s earning back more for you than anything else.
Tax-favored Accounts. You could choose to save in a regular savings account which is taxable, but you could make a smarter decision and go for a retirement account that provides you with the right types of tax breaks. An IRA can put you in a better position later on in life.
Real Estate Investment. Where possible, try to save for a house of your own that – by the time you retire – is yours to have outright. Owning a house gives you a tangible asset and it’s going to pay you back in kind by the time you get to retirement and you choose to sell on.
Go For 4%. Ideally, you want to withdraw 4% of your total retirement account as your salary baseline. The remainder will continue to accrue interest as the time moves forward, and you can up the amount you withdraw in line with the rate of inflation.
Your retirement has to keep you warm, fed and clothed – and in golf clubs – so start early, invest wisely and save, save, save!