Still Saving for Retirement? 4 Tips for Success
Congrats, you’re in the final miles of your marathon! As the saying goes, saving for retirement isn’t a sprint, it’s a marathon. You face a number of things as you wind down your career, but you don’t want to overlook the most important thing – setting yourself up for an enjoyable retirement. Here’s how to ensure you cross the finish line running.
Review Your Retirement Accounts
Regardless of whether you started saving later in life or you mastered retirement planning years ago, you want to review all your retirement accounts. This includes current and outstanding 401(k) plans, IRAs and anything else you have set aside for retirement. The goal is to find out how much you have saved so you can begin to form a plan.
Max out all of your available retirement accounts, including any catch-ups for being over 50. If you don’t have an IRA, a Four Points IRA can help you to start saving. Don’t overlook a Health Savings Account (HSA) if you have access to one. Medical costs can be unpredictable in retirement, and an HSA can help you manage those costs more tax efficiently.
Kill Your Debt
Debt erodes wealth. You want to continue to build wealth in the final stretch, and debt will make that difficult. This is especially the case with high-interest debt like credit card debt.
The quickest way you can save more money is by spending less. Minimizing or eliminating debt now will help free up more money in retirement to do the things you want. If you still have a mortgage, look at how you can pay that off more quickly so you can enter retirement free of any type of debt.
Know What You Will Need
You may hear a lot about a magic number that defines what you need financially to retire to the kind of life you want. It may sound silly, but this number comes from forming a plan. This plan helps you know with confidence what to focus on financially.
You need to personalize your plan, but it should include some of the following basics:
- What will you be investing in?
- How often will I review my investments?
- What kind of lifestyle do I want in retirement?
- What specific needs does my family have?
Don’t be concerned if it takes some time to establish your plan. What’s important is to go into retirement knowing what you want and how to accomplish it. Don’t be afraid to seek help from a financial advisor to form a plan as they can provide good insight and assistance.
Protect You and Your Family
Saving and investing are vital parts to saving for retirement. However, it doesn’t encompass the entirety of effective retirement planning. If you’ve not done so, now is the time to consider some of the following additional needs:
- Long-Term Care Insurance
- Writing a will or considering a Trust
- Life insurance
All of the above helps protect what you’ve worked so hard to provide for your family. You may have other areas to consider, but the above is a good start.
With a little work and a few more hard strides, you can finish the race and enjoy the kind of retirement you want.
Are you still saving for retirement? What questions do you have? How are you working towards the accomplishment of your goals? How do you stay motivated to keep saving?