4 Tips For Retirement Planning At Any Stage Of Your Career
For some commercial real estate professionals, retirement may feel a lifetime away, but in reality, it could be closer than they think.
Retirement is a goal for most people, but they often put off planning for it. Sixty-three percent of Americans surveyed by the Alliance for Lifetime Income have no source of protected lifetime income, and 80% said they are concerned that their current savings will not be enough to get them through retirement.
Planning for retirement can be a daunting task, which is why it is important to start the process early. Knowing where to begin is the first step toward planning for a stronger financial future. With that in mind, here are some first steps to take down the road to retirement.
Define Your Unique Retirement Goals
The first step toward retirement is to plan out specific goals. AARP suggests starting small by creating a list of top five retirement goals — top priorities for retirement that can be described in as vivid detail as possible, from what it is to how to get there.
For example, instead of listing a broad idea like “buy a boat,” the prospective retiree should write down key features of their dream vessel, investigate what the average price range for such a boat would be and what other costs would be associated with this purchase, including upkeep, maintenance, and docking and storage costs.
Whether someone’s top goals include traveling, volunteering or joining a country club, they should continue building out these priorities with as much detail as possible. This will help them determine how much money they will need and how much longer they will need to work to achieve these goals.
Assess Your Current Financial Assets
Once a retirement picture is starting to form, it is time to start considering the financial elements of a post-professional lifestyle. AARP also recommends people create a list or spreadsheet that takes stock of and tracks all of their assets, including income streams, savings accounts, stocks and any other items in their portfolio that could be used to fund their retirement.
With each line item, it is important to include all relevant information that has a financial impact on each asset. For instance, people who already have a savings account, 401(k) or IRA should make note of the interest rates, contributions and potential taxes or other fees that would be assessed when you withdraw these funds. Fox Business recommends speaking with a financial adviser to determine how to maximize current financial assets to be better positioned for retirement.
Create A Flexible Budget
Creating and sticking to a budget is vital in responsibly preparing for retirement. The first step is to take into account your current income and expenses. CNBC advises adding retirement savings to a budget and consistently placing money toward it into a savings account.
Perhaps just as important is ensuring budgeting remains practical and flexible. The years between now and retirement are unpredictable, which means that both positive and negative factors can influence a budget — from receiving a one-time bonus to losing a job and moving to another with a lower salary. This is why it is key to revisit and adjust a budget regularly.
Begin Saving As Soon As Possible
As with any large financial goal, it is never too early to begin saving for retirement. Workers of all ages should begin saving immediately, even if that means starting with just small deposits into a retirement fund. The Balance recommends finding diverse ways to increase savings by cutting down on expenses. Though a cup of coffee each day may seem like a small expense, putting that $5 a day into a retirement account could mean the difference between someone retiring early and working well into their golden years.
This feature was produced in collaboration between Studio B and United Bank. Bisnow news staff was not involved in the production of this content.
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