How to Plan for Retirement

As a financial advisor, I help individuals plan for retirement, among other things. I deal with young people who are just starting out and wanting to make good choices to plan for their futures. I also deal with a lot of older people who are scared about their future and don't have enough money saved to sustain them in their retirement. If you are nearing retirement or just want to get a jump on things, there are several things you can do to plan for your future and help fund your retirement.

Estimate Your Retirement Needs

Don't let this one sneak up on you. You may not be able to calculate your retirement needs to the exact penny, but you can get a pretty good estimate together, no matter what stage of life you are in. Plan the amount you think you will need to finance your retirement. Estimate bills such as car payments, mortgage, utilities and other expenses so you can plan accordingly. Don't forget to add extras like travel and vacations, memberships and frivolous fun things that you will want to be able to do.

Plan Your Retirement Income

Estimate your income from Social Security benefits, pensions, profit-sharing plans and 401Ks, and other investments such as stocks, bonds and mutual funds. This will help you get a handle on whether you will be short or have enough coming in to finance your needs after retirement.

Invest in Advance

Put money in stocks, bonds, 401(k), IRAs, savings accounts, CDs and other investment vehicles. Contribute the maximum allowable amounts to these vehicles each year to maximize your retirement accounts. Don't live like a pauper now, but contribute everything you can comfortably afford to contribute now, so you don't have the fear of living in poverty later.

Pay Off Bills Now

Pay off car loans, unsecured debt and other bills now. Once these are paid off, attack your mortgage. This will help lower the amount you'll need to be able to live comfortably after you retire. You will also have greater peace of mind knowing that you have a car and home safely paid off before you lose your full-time work income.

Seek Advice and Information

As always, seek the advice of a licensed, reputable financial counselor before making any decisions or plans regarding your retirement or any other financial issue. Your financial advisor is the best-equipped person to help you with your specific needs.

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