You might have been told numerous times, either by your parents, professors, or whomever, to start planning for retirement. As noble as this advice is, not everyone knows how to go about it in the best of ways. Fortunately, the steps toward a comfortable retirement aren't as difficult to take as you may think. Keep the following do's and don'ts, provided by the likes of Bob Jain, in mind so that you can live comfortably once you're done working.
DO save as early as possible. The cardinal rule of retirement planning, according to Robert Jain, is to save for retirement early on. Not everyone can do this in their early 20s, for example, but it's entirely possible to do so once you have a full-time job. This is especially true if your job has a 401(k) or IRA system set up for its employees. When you start saving early on, it can make a considerable difference later down the road.
DON'T be shy about automating your savings. It can be difficult to commit to the retirement saving process, which is where automation comes into play. There are many plans that allow savers to automatically take money from their paychecks, which will then be applied to the plans they have. Simply put, little effort is needed on their end. By following this step, you'll save considerable time in the long term.
DO use your raises to plan for retirement. When you earn a raise, it's often regarded as a testament to your hard work. Why not reward yourself in the long-term sense? You can apply your yearly raises to your retirement plan, which means that you can accumulate more money over the course of time. In short, you'll reach your goal sooner. This is a great tip that more retirement savers, young or old, should take advantage of.
DON'T retire without a plan. Even though you may be able to save money, this doesn't mean that your retirement will be comfortable. You should have a plan in place, no matter how vague it might seem. There are many people that like to stay active after they're done working. Perhaps you'd like to take up a hobby you didn't have time for in the past, or maybe traveling is a goal of yours. Regardless, having set goals is an essential piece of the retirement puzzle.
DO save as early as possible. The cardinal rule of retirement planning, according to Robert Jain, is to save for retirement early on. Not everyone can do this in their early 20s, for example, but it's entirely possible to do so once you have a full-time job. This is especially true if your job has a 401(k) or IRA system set up for its employees. When you start saving early on, it can make a considerable difference later down the road.
DON'T be shy about automating your savings. It can be difficult to commit to the retirement saving process, which is where automation comes into play. There are many plans that allow savers to automatically take money from their paychecks, which will then be applied to the plans they have. Simply put, little effort is needed on their end. By following this step, you'll save considerable time in the long term.
DO use your raises to plan for retirement. When you earn a raise, it's often regarded as a testament to your hard work. Why not reward yourself in the long-term sense? You can apply your yearly raises to your retirement plan, which means that you can accumulate more money over the course of time. In short, you'll reach your goal sooner. This is a great tip that more retirement savers, young or old, should take advantage of.
DON'T retire without a plan. Even though you may be able to save money, this doesn't mean that your retirement will be comfortable. You should have a plan in place, no matter how vague it might seem. There are many people that like to stay active after they're done working. Perhaps you'd like to take up a hobby you didn't have time for in the past, or maybe traveling is a goal of yours. Regardless, having set goals is an essential piece of the retirement puzzle.
About the Author:
Consult Bob Jain if you would like to become more skilled in regard to finance.. This article, Retirement Do's And Don'ts Provided By Bob Jain is released under a creative commons attribution license.
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