Monday, November 2, 2009

Start Planning NOW.



By Laura Reginelli

It’s never too early to start planning for your retirement, even if you’re embarking on your first job in your career. So you may be wondering where to start in the planning process. Well here are a few tips to get you moving.

1) Plan ahead and try to have your mortgage paid off before you retire. This will cut down your expenses immensely when you choose to retire.


2) It is recommended that you have around 75% of your pre-retirement income to retire. However, this percentage varies based on your lifestyle and family size. For example, a single retiree only needs around 55% of his or her pre-retirement income. Furthermore, as the number of children you have increases, it is smart to have more saved up for retirement.


3) Determine what the source of receiving your money during retirement will be. Will you have enough from your 401K, Social Security benefits and pensions? Or will you have to consider obtaining a part-time job during retirement to keep up with your expenses?


4) CNN Money recommends that you start as early as possible on contributing to your 401K. This long term investment will put your interests first when it comes to retirement and living comfortably.All in all, it pays to start planning early. You must determine how much money that you will find necessary to live on when retirement rolls around. From there, plans and decisions must be made accordingly. So get a head start and plan your retirement now!


Sources: http://money.cnn.com/2009/10/26/pf/expert/401k_contributions.moneymag/index.htm?postversion=2009102711


http://www.denverpost.com/business/ci_13682131?source=rss


http://www.ehow.com/how_5058058_build-secure-retirement-savings.html?ref=fuel&utm_source=yahoo&utm_medium=ssp&utm_campaign=yssp_art

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