How to Start Retirement Planning?

The best time to start is right now! Retirement planning is something we all should be doing, but most of us don’t take the time to start. The earlier you start preparing and saving the faster you will reach your financial goals for retirement. If you’re having trouble getting started, we’ve got the top retirement planning tips for you to follow!

Retirement Planning Tips

1.      When You Should Start Retirement Planning

Believe it or not, your 20s is the best time to start saving for your retirement. Most 20-year-olds are only just getting started in their careers and aren’t thinking about planning for the future. But the earlier you start planning, the more money you will have saved in the long run. Remember, it’s never too late to start preparing!

2.      Determine When to Retire

There’s no set age you need to retire at, it all depends when you want to and are financially stable to do so. But having an idea of when you would want to retire will help you plan how much you need to save to live comfortably!

3.      Prioritize Your Financial Goals

For most people saving for retirement isn’t the only thing they are saving for. Some are paying off student loans, saving for a new car or house, and building up an emergency fund. This is why it’s important to make a list of your expenses and financial goals to determine how much of your paycheck to set aside to help build your retirement savings.

4.      Choose a Retirement Plan

Once you’ve determined how much you need to save for your retirement, you need to decide where to save it. Working with an accountant or financial planner will help you choose the best plan for you. Some of the most common retirement plans include:

  • 401(k)
  • Traditional IRA
  • Roth IRA
  • Solo 401(k)
  • Sep IRA

5.      Consider Retirement Investments

When retirement planning, investing your money is a great way for you to build your savings. Stocks, bonds, and real estate are some of the most profitable investments, especially if you don’t need the money right away and you can let it grow.

Retirement looks different for everyone whether you’re starting a new hobby or relaxing on a beach you need enough savings so you can live the dream retirement you deserve. At Calabrese & Associates, P.C. our accounting professionals will assist with retirement planning and help your business develop an employee retirement plan. Visit our website today to get started!