How to Coast Into Retirement

Retirement and planning for it can be easy if you start early enough.

With all of the retirement planning options out there, it can seem difficult for you to know where to start. Knowing when to start can be problematic as well. Many people see retirement as something that is way faraway and that saving money for it doesn't apply to them just yet, even though they may in fact need to. By starting early, investing wisely and efficiently planning, you can ease stress during the latter stages of your career and have a retirement that does not include pinching pennies.

Instructions

1. Decide on the lifestyle you wish to lead during retirement. This will help you avoid generic plans that are not necessarily right for you. Do you crave the simple life, where the fact that you don't have to work is its own reward? Or are you more inclined to want to travel the world and take on new things? By knowing specifically what you are saving for, you will be better able to come up with a plan that is tailored to your needs.

2. Explore the options already at your disposal. If your employer has a 401(k) plan, begin investing immediately. Most companies offer a degree of flexibility regarding how much you wish to contribute, and some of them match a percentage of your number. Invest as much as you are comfortable with to get the ball rolling.

3. Set up a basic budget for yourself. It doesn't have to be too elaborate just yet, but make sure that you have everything documented. What you are looking for is a general financial overview; how much is coming in, how much is going out and how much is left over. Include any outstanding debt as well.

4. Consult with a financial adviser. Many banks provide them as a service to their customers, but there are also several independent firms as well, such as Fidelity or Edward Jones. An adviser will be able to fine tune the preliminary preparations that you have already made and give you helpful information on how to make your money grow. The adviser can also help keep you on track during any sort of setback.

References

• Money Instructor: Retirement Planning Tips, Advice and Information