If you are keen to enjoy a comfortable an financially stable lifestyle post retirement, then it is essential that you start planning early on. In other words, you should start planning from your twenties for your retirement. When you retire you will be deprived of a steady income in the form of a salary, which must be compensated by income earned from investments. This means you must have a diverse portfolio of investments that will ensure financial comfort even after retirement. The investments you make should be in the form of Individual Retirement Accounts or IRAs. You can choose to invest in the traditional IRAs or the ROTH IRAs. The major difference between the two types of IRA s is that there is a withdrawal limit on the ROTH IRAs. This also ensures that you are ‘forced’ to save for your retirement. Andrew Corbman mentioned that individuals should start planning their retirement as soon as they start working. As their career progresses, the income of the salaried individuals will increase and so will the income tax payable. Thus, to ensure tax deferred payments and to do retirement planning, you should consider investing in IRAs. Some of the points that you should consider in order to have a comfortable lifestyle on retirement are as follows:
- Long term financial goals: You must set certain long term financial goals, which you should progressively work towards achieving. These goals can be in the form of wealth that you wish to acquire, the investments in your portfolios and also the savings that you want to have. One of the best methods of achieving these long term goals is by opening IRAs. When you set a goal, you must break it down into smaller steps like setting a goal, making a plan as to how you can achieve it, working towards achieving the goal and finally reaching your goal. When it comes to financial goals, you must plan each step carefully so that you are able to achieve the financial goal that you have set with ease.
- Pay off debts: An important part of ensuring that you are able to enjoy a comfortable life post retirement is to pay off all debts. You should not be paying off your debts from your retirement savings. If you have taken student’s loan then it is essential to pay it off at the earliest. If you procrastinate paying off debts then you will end up paying for these from your retirement savings thereby depleting it significantly.
Thus, it is essential to start saving for your retirement at the earliest. Andrew Corbman a renowned financial analyst mention that individuals often make the mistake of not paying of their debts early on in their career and this leads to major financial crises post retirement. Additionally, it will also reduce stress related to your finances and retirement plans. So plan for your retirement at the earliest to enjoy a comfortable life post retirement.