Gearing up for retirement cannot be done in a single day. It takes persistence and care–and here at Miramontes Capital, we can help you through the sometimes daunting process. These 12 tips will help guide you toward the best ways to prepare for retirement.
12 Of The Top Ways To Prepare For Retirement
- Start saving, keep saving, and stick to your goals. Come up with a plan, and make it a point to not give up on it. The sooner you begin saving up, the more time your money has to grow. To improve your budgeting skills, try out a free personal budgeting tool.
- Don’t withdraw your retirement savings. If you withdraw your retirement funds now, you will lose principal and interest and you might lose tax benefits or be required to pay withdrawal penalties. If you switch jobs, keep your savings invested in your current retirement plan, or roll them over to an IRA or into your new employer’s plan. Read more about withdrawing your money during retirement here.
- Understand your personal retirement needs. Retirement can be costly. Some experts say you might need at least 70% of your pre-retirement income to keep up your standard of living when you leave the workforce. Plan ahead to take charge of your financial future.
- Consider basic investment principles. How you save can be as crucial as how much you save. Inflation and the kinds of investments you make play important parts in how much you will have saved up at retirement. Learn about your own savings or pension plan’s investment options, and ask the questions you need answered. Consider diversifying your savings when investing, to potentially reduce risk and improve returns. Financial security and knowledge go hand-in-hand. For more help with investing during retirement, contact a professional financial adviser at Miramontes Capital.
- Take part in your employer’s retirement savings plan. If your employer offers this sort of plan, such as a 401(k), sign up and contribute what you can. This has more benefits than being one of the best ways to prepare for retirement; the compound interest and tax deferrals can make a major difference in the savings you can accumulate.
- Learn about the pension plan provided by your employer. Check to make sure you are covered by your employer’s plan and learn how it works. You might also request an individual benefit statement to see what your own benefit is worth. Before switching jobs, find out what will happen to the pension benefit you signed up for. Furthermore, find out if you can receive benefits from your spouse’s plan. Much of knowing the best ways to prepare for retirement is through educating yourself.
- Read up on your Social Security benefits. Social Security pays benefits that you can estimate via the Social Security Administration’s website, www.socialsecurity.gov.
- Ask your employer to start up a retirement plan. If your employer does not offer a retirement plan, encourage your company to start one. Your employer might be able to set up a simplified plan that can help both you and your fellow employees and supervisors.
- Put some money into an individual retirement account. You can place up to $5,500 a year into an Individual Retirement Account (IRA); you can contribute even more if you are 50 or older. You can also begin with much less and build up a healthy amount of savings. IRAs also provide tax advantages. Whether you choose a traditional IRA or a Roth IRA, the taxes applied to your contributions and withdrawals (as well as after-tax value of your withdrawal) depend on which IRA you select. This is one of the easiest ways to prepare for retirement and save money. You can set your IRA plan up so a certain amount is automatically deposited from your checking or savings account and placed into the IRA.
- Seek retirement planning help from a professional. One of the best ways to prepare for retirement is to schedule a meeting with a financial adviser first. You can discuss everything that will help you through the retirement planning process.
- Ask plenty of questions. When visiting with a retirement planning professional, come with questions. You can receive practical retirement advice from our advisors at Miramontes Capital.
- Pay attention to your personal comfort zone. Whether you are more conservative or aggressive with your finances relates to your comfort zone in retirement. If you have saved a certain way for most of your life, and you are not comfortable drastically changing how you invest your money, it is important to do what feels most comfortable and logical for you. Read more on this here.
For more help regarding the best ways to prepare for retirement, contact Miramontes Capital.
For further reading, browse these 21 Smart Retirement Questions To Ask Yourself Before You Retire.
Schedule an in office or over the phone consultation to discuss how Miramontes Capital can help you with your new beginning through retirement planning.
Miramontes Capital is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Miramontes Capital and its representatives are properly licensed or exempt from licensure. This video is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Miramontes Capital unless a client service agreement is in place. Miramontes Capital is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Miramontes Capital and its representatives are properly licensed or exempt from licensure. This video is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Miramontes Capital unless a client service agreement is in place.