Preparing for retirement takes strategic planning. You can tuck money away here and there to tell yourself that you’re planning for retirement, but you’re not doing much more than floundering financially. Saving without a plan is like rowing a boat in a lake with only one oar. It feels like you’re making progress, but you’re not doing anything but going in circles. Our team at OWLFI can help you make progress toward preparing for retirement with strategic retirement planning in Lenexa, KS. We can give you some tips to help you get started with your strategic planning.
Start saving today.
It’s never too early to start saving for retirement, so it’s recommended that you start saving as soon as possible. It doesn’t matter if you’re 21 or 41 years old; you can start growing your nest egg by contributing today. Every dollar will count when it comes time to retire, so it’s best if you start putting something into a savings account as soon as you can.
Make a budget and practice.
It’s normal to start thinking about your monthly expenses as you get closer to retirement. Consider how much you’ll be spending on food, vehicle fuel, utilities, and housing every month, then start practicing staying within it. Of course, you’ll likely have to budget more each month for vehicle fuel before retirement because you’re still commuting every day. However, you can start to be more frugal with some of your other habits by taking a sack lunch with you to work or making sure the lights are off in empty rooms in your home. It's better to practice cutting back now when you have more of a cushion than when it's manditory.
Eliminate your debt.
Getting out of debt is one of the best things you can do to prepare for retirement. Allowing debt to sit and accumulate via interest can chew up your personal wealth faster than just about anything. Make strides to eliminate as much of your debt as possible as a part of your strategic retirement plan, and you’ll enjoy financial stability in retirement by adding several hundred more dollars to your monthly budget.
Know your employment options.
You don’t always have to save for retirement on your own accord. Many employers will offer help by matching contributions to a 401(k) or another retirement account. Learn what kind of retirement accounts your employer offers and sign up for a plan right away. You can have a percentage of your paycheck deposited directly into your account and enjoy the benefits that come with a favorable interest rate. You can grow your retirement fund without consciously depositing any money into your account each month.
Track your investments.
Making smart investments can pay off handsomely in retirement. Depending on where you invest, you could enjoy a passive income that trickles in monthly or quarterly. Keep an eye on these investments so you’re aware of how your money is growing over time. If you want to invest in the stock market, you’ll want to keep an eye on the market as years go by to ensure that you’re not losing large amounts of money if the market drops.
Plan for early retirement.
You never know when you’re going to be forced into early retirement. Whether it’s because of something your company does or what happens in the world, you need to be prepared. In fact, more than 3 million Americans retired early during the COVID-19 pandemic because of work restrictions. Plan for the worst and hope for the best heading into retirement, and you’ll be financially set.
Schedule an appointment today.
Book an appointment today with a member of our team at OWLFI, and we’ll help you with strategic retirement planning in Lenexa, KS. Get in touch by calling 913-441-8380 or sending a message using our chat tool.