Tips For How To Retire Comfortably And Happy

By Ines Flores


Retirement can be an exciting time for many people, but it can be challenging as well. Going from working full-time to suddenly having a lot more free time can be a good thing, yet overwhelming too. There are also financial concerns to take into consideration. Before you stop working, make sure you seek good advice on how to retire comfortably and happy.

If you are worried that you will not have enough money in retirement or that you will be bored once you stop working, you may want to consider continuing work in some form. You can shift from working full-time to part-time, which gives you more time to yourself and some income as well. It also will help to keep your mind sharp as you continue to engage in intellectual activities and interact with others.

If your employer does not have a retirement plan, ask them to start one. If they refuse, put your money in an Individual Retirement Account. You are allowed to put $5,500 each year into your IRA. Once you are over fifty, you can contribute more than that. An IRA offers certain tax advantages for individuals who want to grow their money for the future.

For many retirees, volunteering becomes a big part of their life and takes up many of the hours that a regular job would have. Many of them view this as a means of giving back to their community. However, this does not necessarily mean that you have to volunteer in a soup kitchen. You can volunteer as a consultant for a non-profit organization, a substitute teacher, or a mentor to young people.

Whatever you are interested in doing in retirement, the key to living well is to start saving early and keep saving. Save no less than twenty percent of your income. With each paycheck, the money can be taken out if you set up an automatic transfer for it to go in an investment account where you will not be tempted to touch it.

If you are behind in your savings goals, or you currently have a lot of debt, do not worry. Start saving small amounts and increase this with each pay raise you receive. The sooner you begin to save, the more time you are giving your money to grow with compound interest.

You also need to know what your financial needs are. Many financial advisors suggest that you aim to replace at least seventy percent of your income when you retire. This is the average amount needed to sustain you after you quit working. Some people may need more or less, depending on their personal circumstances.

Remember that the key to a good retirement is planning ahead. Find out as much information as you can by reading books on retirement and setting up a meeting with your financial planner. Speak to the personnel manager at your company about any pension benefits you may be entitled to. Contact your bank or a well-known investment firm about setting up a 401(k) or an IRA account. Use these as tools for your financial success.




About the Author:



No comments:

Post a Comment