"Retirement" is a term that draws intimidation when it comes to the planning process. Bob Jain, as well as other financial minds, will tell you that this doesn't have to be the case. As a matter of fact, there are numerous ways that you can make matters easier for yourself. How can one save up enough money so that they retire comfortably, regardless of what their work entails? It all starts by learning, so start with these do's & don'ts.
DO save as early as possible. The cardinal rule of retirement planning, according to Robert Jain, is to save for retirement early on. Not everyone can do this in their early 20s, for example, but it's entirely possible to do so once you have a full-time job. This is especially true if your job has a 401(k) or IRA system set up for its employees. When you start saving early on, it can make a considerable difference later down the road.
DON'T forget to automate your savings. If you fear that you won't be able to contribute to your IRA, 401(k), or what have you on your own, automate it. There are many plans that take money from your regular paycheck, applying it to the plan that you have in place. What this means is that you never have to worry about making a payment. Everything will be handled for you, which should provide considerable peace of mind.
DO apply raises to your retirement plan. Raises are expected in certain workplaces, but how can they be used to their fullest? While this might go without saying, applying the additional funds to your retirement plan can go a long way. Among other things, this will allow you to reach your retirement goal sooner than expected. If you use your raises wisely, you'll eventually be able to benefit from a more comfortable life.
DON'T retire without a plan. Even though you may be able to save money, this doesn't mean that your retirement will be comfortable. You should have a plan in place, no matter how vague it might seem. There are many people that like to stay active after they're done working. Perhaps you'd like to take up a hobby you didn't have time for in the past, or maybe traveling is a goal of yours. Regardless, having set goals is an essential piece of the retirement puzzle.
DO save as early as possible. The cardinal rule of retirement planning, according to Robert Jain, is to save for retirement early on. Not everyone can do this in their early 20s, for example, but it's entirely possible to do so once you have a full-time job. This is especially true if your job has a 401(k) or IRA system set up for its employees. When you start saving early on, it can make a considerable difference later down the road.
DON'T forget to automate your savings. If you fear that you won't be able to contribute to your IRA, 401(k), or what have you on your own, automate it. There are many plans that take money from your regular paycheck, applying it to the plan that you have in place. What this means is that you never have to worry about making a payment. Everything will be handled for you, which should provide considerable peace of mind.
DO apply raises to your retirement plan. Raises are expected in certain workplaces, but how can they be used to their fullest? While this might go without saying, applying the additional funds to your retirement plan can go a long way. Among other things, this will allow you to reach your retirement goal sooner than expected. If you use your raises wisely, you'll eventually be able to benefit from a more comfortable life.
DON'T retire without a plan. Even though you may be able to save money, this doesn't mean that your retirement will be comfortable. You should have a plan in place, no matter how vague it might seem. There are many people that like to stay active after they're done working. Perhaps you'd like to take up a hobby you didn't have time for in the past, or maybe traveling is a goal of yours. Regardless, having set goals is an essential piece of the retirement puzzle.
