Planning for Retirement
Today, people are living much longer than
in previous generations. Thirty years of retirement may sound great, but that means
you need enough money to maintain your lifestyle all those years.
Old thinking about retirement plans just doesn't work for today's retiree. Most
Americans do not have the luxury of a company-provided pension. It's time for
new thinking that addresses today's complex web of retirement income sources:
401(k)s, IRAs, Social Security,
insurance policies, and personal savings.
What's Right for You?
With so many different types of retirement accounts available, it can be confusing to
determine what is right for you. Consider your investment objectives. Are you planning
to continue to work part-time? Are you seeking long-term growth? Or do you need a
combination of growth and income? The answers to these questions can help determine
which strategy will work best for you.
You can visit Old Mutual Capital for a simple chart of the
various types of retirement accounts.
There are some basic tips when it comes to planning your retirement that make sense
no matter what your goals, and the sooner you implement them the better.
Contribute the maximum amount to your employer-sponsored plan
This is one of the simplest and most painless ways to save. Since the money is often
deducted right from your paycheck, you are less likely to miss it. Your company may
even match a portion of your contributions. To encourage individuals who are closer to retirement
to save more, the limit on the amount you can contribute increases if you are age 50 or older.
Invest in an IRA that offers a range of investments
With a wide selection of funds, you're more likely to find investments suited to your
retirement goals and time frame.
Reevaluate your insurance needs
Make sure that your loved ones can cover your final expenses and maintain a comfortable
lifestyle after you are gone.
Talk to a Professional
Ultimately, the decisions are yours. But having the best information and practical advice
is invaluable in the process. The best decision you can make is to find a
financial professional
that can help guide you. Together, you can develop a plan to maximize your
retirement account before you retire.
