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Planning Your Retirement While Young Overview
Home » Retirement » Planning Your Retirement While Young » Planning Your Retirement While Young OverviewBelieve it or not, retirement comes sooner than you think! Planning for that retirement while young makes all the difference in your standard of living upon retirement. Experts agree that retirees will need 70% of their pre-retirement income to live comfortably. Reaching this financial destination with plenty of money is possible with long-range planning. Setting this goal is not much different than choosing a vacation destination. In this case, you are trying to get somewhere with your money-retirement. When planning, look for vehicles that will give you the most bang for the buck. A combination of stocks, bonds and cash will help you achieve your goals. However, this may seem to be an unreachable goal when you are young. It is important to know your net worth (the total value of everything you own, minus debt) and know your budget. This is the starting point to travel to successfully reach your retirement. Knowing this information about your money will enable you to realize how much a month you can invest. There are several types of retirement investment accounts that will enlarge your portfolio as you work and grow older. Retirement accounts such as Individual Retirement Accounts (IRA’s) and 401(k) accounts are two such investments. Many paint a grim picture of Social Security and even though this a great benefit as we age, it is not wise to hang your retirement income only on Social Security. The earliest you can start receiving Social Security is 62 and this is at a reduced benefit. The full benefit is slowly moving from 65 to 67 years of age. With good health it is possible to have 30 years of retirement living. It becomes obvious why we mush supplement benefits with pensions, savings and investments.
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