Retirement planning consists of strategic investments and building savings to earn a stable income. Here are a few easy tips to follow for a smooth and beneficial retirement.
Consider Age-Appropriate Investments
Investing is one of the most important ways to put money towards your retirement, and your age will determine the best ways to make said investments. If, for example, you are younger and have a considerable amount of time until your projected retirement, you should make “riskier” investments. This sounds intimidating, but these investments in things such as stocks produce a greater return if given enough time to grow.
If, however, you are closer to your retirement, you will do far better to invest in more stable things such as bonds. As you age, your resources should be targeted away from growth potential towards preserving capital, i.e., maintaining the money you already have saved.
Work Towards a Tax-Free Retirement
No one wants to pay taxes. But, when working towards a stable income after retirement, avoiding taxes is possible and extremely important. If you are currently or planning on putting money towards your retirement, consider investing in a Roth IRA or 401(k) plan. Roth IRAs are untaxed savings accounts and are among the best and easiest ways to earn a tax-free retirement. And, especially if you are still working, a 401(k) plan will function similarly.
For more information about tax-free retirement, check out our blog on the subject.
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Plan for the Retirement You Want
Don’t underestimate your retirement goals—experts estimate that you will need 70 to 90 percent of your pre-retirement income to maintain your standard of living after you stop working. Planning for retirement means doing just that—planning. Don’t set low goals; work towards your goals intentionally, and you will be surprised at the post-retirement income you can earn.
Get the Retirement Planning Help You Need
Don’t be scared by your retirement future—the resources you need are at your fingertips. For the best retirement help from the experts, call World Financial Solutions at 281-639-7787.