Here's How to Get A Head Start Planning for Retirement
Retirement planning sounds like one of those things you do when you’re older, but it’s something you must start doing when you’re young. You don’t wait until it’s time to leave for the airport to venture off on vacation to start packing for a family of six. You won’t finish packing, you won’t be ready to go in time to make your flight, and you’ll miss vacation. The same concept applies to retirement. If you wait until you’re almost ready to retire to start planning for it, you’re not going to be ready to retire. You’re young, you’re just starting your family, and it’s time to think about your future.
Think About What You Want
This is the most important thing you should do as a young couple and new parents. What do you want for your future? Do you want to retire early and spend time with your kids? Do you want to retire on time so you can keep your grandkids for your own kids while they fulfill their own dreams of building their businesses and futures, or would you love to travel the world, live on the beach, or have multiple homes in all your favorite locations?
Would you like to help your kids pay for college or make a down payment on their first home? Is your dream to pay for your little girl to get married to the man of her dreams with a picture-perfect wedding day to remember it by? Do you want to save for a quality nursing home? (check out nursing homes statistics of things to watch out for when looking for a nursing home)
Whatever you want for your future is what you need to know. Write it down, budget it, and don’t forget to account for inflation and the rising cost of living. This helps you learn what you need to save and how you need to save it to make all these dreams come true.
Max Out Your Benefits
If your employer offers a retirement benefits package, use it. This is more important if your employer also has an employer-match program. Does your employer allow you to save up to $5,000 per year in your employer-offered retirement account and they match up to 25 percent of what you contribute? If you aren’t contributing the full $5,000, you’re losing free money. If you save $5,000 per year, your employer is matching that up to 25 percent, which is $1,250 per year.
Over the course of 10 years with your company, your employer is going to give you $12,500 in free money with which to retire. That’s a lot of money you didn’t contribute, and it’s a lot of money that can make you more money. Max out your retirement benefits right now.
Get Rid of Your Debts
If you’re living debt-free already, you’re doing well. However, you have other debts. Your car and your home are both debts, and they’re easy to forget if you don’t have credit card debt. One way to help you pay these things off faster so you have no monetary obligations when you retire is to find savings anywhere you can and apply that money to your debts. See about cheap auto insurance quotes with a new company so you can save money to apply toward your car payment. Lower your cell phone bill, get rid of cable, and cancel magazine subscriptions. You can save money anywhere so you can apply it to your other debts and live a life of financial freedom when you retire.
Your retirement will be here before you know it. If you’re a new parent, you are about to learn that every adult who told you time passes so quickly when you have kids is the most truthful statement ever made. It flies by, and you don’t want to be caught unprepared and by surprise one day when you’re ready to retire and you haven’t done what you needed to prepare for this moment.