I hope to be able to retire some day, at least partially. How about you? Planning for retirement is not only hard to do but it can also be scary. But not having a plan in place can be even scarier. Globe University graduates are learning the plans and benefits for retirement savings.
Figuring out the best way to save and where to put the money are just a few of the questions that this kind of planning needs to consider.
Here are some tips for making some sense out of how to get on track or to stay on track with retirement planning.
- Find out how much you will receive in Social Security benefits. You will need to know at what age you will be allowed to begin drawing benefits, how much you will get at retirement age and how much more you would get if you waited to begin collecting benefits. There are several online tools to help you determine this. Consulting a professional with an accounting degree or a retirement planning expert can help you determine the best way to get your benefits.
- Figure out when you want to retire. Having a target date is essential to the planning. You need to know how long you have to get everything in order. Starting on a retirement plan as early in your career as possible is ideal, but catch up is possible with discipline.
- Calculate what you think you will need to live on. There are some important things to consider with this. For example, you may figure that you will eat more at home when you are retired but many people find that they actually eat out more because they don’t have the daily grind to deal with. Another item is vacations. Now you may be taking a vacation or two a year. When you are retired you will be able to go more often and might need extra funds for travel. Another thing to consider is hobbies. If you have a hobby you love but have little time for now, once you retire you may need additional funds to keep your hobby going.
- Maximize any tax advantaged plan available to you. Individual retirement accounts, retirement plans and annuities that are available to you. Put the max you can into 401K savings and double check that the company is depositing their share. Keep track of where you have the money invested to be sure you are maximizing the savings.
- Ask questions and get help if you need it. Retirement planning does not have to be scary. There are a lot of people who have the necessary training to help you make the best decisions. Be sure to check that the people you rely on have the necessary credentials such as an accounting degree or a finance degree.
When you are planning for retirement consider a second career that could bring in some extra retirement income. Going back to school can open new roads and really keep your mind active. An accounting degree can give you options such as starting a small bookkeeping service, helping the elderly with tax issues or even helping others plan for retirement.