How to Start Planning for Retirement
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Posted On :
Apr-09-2013
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Article Word Count :
519
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It is never too early to start planning for retirement, and with fewer people being able to rely on social security income as they age, it is becoming increasingly important to be proactive about planning for one's retirement.
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It is never too early to start planning for retirement, and with fewer people being able to rely on social security income as they age, it is becoming increasingly important to be proactive about planning for one's retirement. Otherwise, you may end up in a world of trouble as your desired retirement age approaches and you are unable to afford the kind of lifestyle that you want. Fortunately for you, there are some basic retirement planning steps that you can take to begin saving money over time that can later be used to contribute to your retirement fund.
Plan and Think Ahead
For starters, you will want to determine exactly what kind of lifestyle you would like to live once it comes time for you to retire. In retirement, no new income will replenish your bank account, so every expense will deduct from the amount you have left to you. Get an idea as to where you would like to live and do some basic calculations to find out how much money you are going to need to have saved to live comfortably. Be sure to factor in all of your living expenses and other costs as you determine this number. This should include housing, groceries and household purchases, restaurant meals, vacations, and extra spending money for leisure activities.
Open a Retirement Account
Next, begin researching the different savings accounts that are available to those who are looking to plan for retirement. For example, one popular option is that of opening up a Roth IRA, which allows you to contribute money on a regular basis and earn interest on the money at the same time. Of course, you will need to find out whether or not you qualify for a Roth IRA or traditional IRA, which you can do by speaking with a team of professional financial advisors Pittsburgh. Based on your income and other factors, they will be able to figure out which type of retirement savings account will be the best option.
Pay Off Your Debts
Next, begin working on paying off as much of your debts as you can, as this will make living on a fixed income more feasible when the time comes. This may include anything from paying off your car or home loan to paying off credit card debt that has accumulated over the years. Make sure to pay well over the minimum so that you are actively decreasing the principle. This will save you possibly thousands of dollars on interest payments down the line. If you need help tackling debt, seek professional advice from non-profit credit counselors near you.
Seek Professional Advice
Do not underestimate the value of hiring financial advisors in Pittsburgh to assist you with the process of planning for retirement. After all, the various stock, bond, savings, and index fund portfolios options can get to be quite overwhelming at first. Having an expert on your side will help reduce the stress that can be associated with planning for retirement, so be sure to hire an advisor if you need to.
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Article Source :
http://www.articleseen.com/Article_How to Start Planning for Retirement_260044.aspx
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Author Resource :
The author has an immense knowledge on index fund portfolios. Know more about financial advisors Pittsburgh related info in his website.
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Keywords :
financial advisors Pittsburgh, index fund portfolios,
Category :
Business
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Business
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