Making the most out of saving for retirement
Photo: Video by fox4now.com
WFTX - What is unique about Retirement Planning? Obviously, it is the goal of most Americans to retire some day, which requires a lot of saving. But what else is unique about retirement?
During our working years, we must save to have a comfortable retirement. For most of us this means saving a little bit out of every paycheck.
To do it properly, you also need to take some time to plan. You need to determine things like:
1. What will my expenses in retirement?
2. How much do I need to save to reach my goal?
3. What’s the best vehicle to use to save?
4. What’s the best Investment Strategy?
Just like with exercising, there are good habits we can follow to maintain our financial fitness and prepare for retirement.
These best practices include things like:
1. Increasing contributions to IRAs or Workplace retirement account like 401(k)s
until you reach the maximum contribution level.
2. Paying down your mortgage and paying off debt.
3. Having an Emergency Savings for unplanned expenses
4. Rolling 401(k)s from past employers into your current 401(k) or an IRA, as we
discussed in our last couple conversations.