You might have been told numerous times, either by your parents, professors, or whomever, to start planning for retirement. As noble as this advice is, not everyone knows how to go about it in the best of ways. Fortunately, the steps toward a comfortable retirement aren't as difficult to take as you may think. Keep the following do's and don'ts, provided by the likes of Bob Jain, in mind so that you can live comfortably once you're done working.
DO save as early as possible. The cardinal rule of retirement planning, according to Robert Jain, is to save for retirement early on. Not everyone can do this in their early 20s, for example, but it's entirely possible to do so once you have a full-time job. This is especially true if your job has a 401(k) or IRA system set up for its employees. When you start saving early on, it can make a considerable difference later down the road.
DON'T be shy about automating your savings. It can be difficult to commit to the retirement saving process, which is where automation comes into play. There are many plans that allow savers to automatically take money from their paychecks, which will then be applied to the plans they have. Simply put, little effort is needed on their end. By following this step, you'll save considerable time in the long term.
DO apply raises to your retirement plan. Raises are expected in certain workplaces, but how can they be used to their fullest? While this might go without saying, applying the additional funds to your retirement plan can go a long way. Among other things, this will allow you to reach your retirement goal sooner than expected. If you use your raises wisely, you'll eventually be able to benefit from a more comfortable life.
DON'T retire without a plan. Even though you may be able to save money, this doesn't mean that your retirement will be comfortable. You should have a plan in place, no matter how vague it might seem. There are many people that like to stay active after they're done working. Perhaps you'd like to take up a hobby you didn't have time for in the past, or maybe traveling is a goal of yours. Regardless, having set goals is an essential piece of the retirement puzzle.
DO save as early as possible. The cardinal rule of retirement planning, according to Robert Jain, is to save for retirement early on. Not everyone can do this in their early 20s, for example, but it's entirely possible to do so once you have a full-time job. This is especially true if your job has a 401(k) or IRA system set up for its employees. When you start saving early on, it can make a considerable difference later down the road.
DON'T be shy about automating your savings. It can be difficult to commit to the retirement saving process, which is where automation comes into play. There are many plans that allow savers to automatically take money from their paychecks, which will then be applied to the plans they have. Simply put, little effort is needed on their end. By following this step, you'll save considerable time in the long term.
DO apply raises to your retirement plan. Raises are expected in certain workplaces, but how can they be used to their fullest? While this might go without saying, applying the additional funds to your retirement plan can go a long way. Among other things, this will allow you to reach your retirement goal sooner than expected. If you use your raises wisely, you'll eventually be able to benefit from a more comfortable life.
DON'T retire without a plan. Even though you may be able to save money, this doesn't mean that your retirement will be comfortable. You should have a plan in place, no matter how vague it might seem. There are many people that like to stay active after they're done working. Perhaps you'd like to take up a hobby you didn't have time for in the past, or maybe traveling is a goal of yours. Regardless, having set goals is an essential piece of the retirement puzzle.
About the Author:
Contact Bob Jain if you would like to become more knowledgeable in regard to finance.