What are the Steps to a Better Retirement?
Simple steps to a better retirement, including methods of saving and diversifying investments.
The steps to a better retirement begin with saving as much as you can, as early as you can. The retirement age keeps going up and many are choosing not to retire even when they reach what is typically considered “retirement age”. This is due to the economic conditions all around us, but it is also due to a lack of good planning.
Four Steps to a Better Retirement
1. If you have not been saving, begin today. If you have been saving, save more. Even a little extra can make a big difference when it comes to retirement. So, if you are saving 10 percent of your income, try to save 15 percent. If you save 20 percent, save 25 percent, and so on.
2. Diversify your portfolio. Don’t put all your money in one place. Put a fair amount into a 401K, certificates of deposit and IRAs or QRPs. Consider mutual funds. Stock options may be appealing to you. Some believe now is a great time to invest in real estate. If you can afford to buy without accruing debt, real estate investment may be for you. Your portfolio should resemble a rainbow of low and higher-risk investments and savings.
3. Sacrifice small pleasures. Instead of drinking high-dollar coffee, buy the regular brand. Instead of going out several times a week, eat at home. Instead of going to the theaters, see the latest movie when it comes out on video. There are likely at least one or two areas in your life in which you can pare down. Calculate how much you save and put the extra money into your savings account every week. Little things do add up.
4. Consider downsizing. If your children have left home, your house may be larger than you need and the high utility bills that go with it may be unnecessary. If you have paid for your house and the value has increased enough to make a profit, consider selling it to buy a less costly home.
The Steps to a Better Retirement: Make Your Golden Years Shine
The steps to a better retirement start small and then get more challenging, but when it comes to living a full and satisfying life, those last few years can mean everything.
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