Regularly saving for retirement is always a wise financial strategy—especially if you are within 10 years of retirement. Here are 7 tips to guide you through the process of creating the retirement you want:
1. Contribute to your
employer’s retirement plan
If your employer offers the traditional 401(K) and you’re eligible, sign up.
2. Start early
With retirement planning, it’s crucial to understand your time horizon. The earlier you start saving and investing, the better you’ll be.
3. Set a goal
Financial independence in retirement takes a lot of time, commitment and money. Take the time to really envision what you want your days and years to feel like.
4. Invest In your health
Eighty percent of current retirees say that health is an essential ingredient for a happy retirement. Working on your health can be rewarding by staying physically and mentally fit. As you approach your retirement age, start to explore how you will go about health insurance.
5. Save, save, save
U.S. Department of Labor reports that 20 percent of Americans don’t save any part of their annual income. Rein in your spending by creating a budget and sticking to it.
6. Know retirement needs
You may require 70 to 90 percent of your pre-retirement income to maintain your current standard of living during your retirement years. Work expenses are replaced with travel and leisure activities, the cost of which can quickly add up.
7. Don’t touch retirement savings
You must become disciplined about your retirement savings plan. If you withdraw your money now, you will lose the benefit of compounding principal and interest accrued over the years. Not to mention the stiff penalty for early termination.
Marsh Wealth Management, LLC Fiduciary Registered Investment Advisor, 504 Ebenezer Road, Knoxville, TN, 37923 (865-622-2162) or www.marshwealth.com
Financial Planning & Investment Advisory Services are offered through Marsh Wealth Management, LLC, an independent investment advisor registered with the state of Tennessee. Marsh is an Investment Advisor representative of MWM in this state. Marsh Professional Group, LLC, is a state-registered public accounting firm and a separate legal entity from MWM. For a detailed discussion of MWM and their investment advisory fees, see the firm’s Form ADV on file with the SEC at www.adviserinfo.sec.gov.