When it comes to retirement planning, no two people take the exact same approach. There are many reasons for this, including the fact that everybody is facing a different set of life circumstances.
For example, your age will dictate the types of retirement planning moves you make. Somebody in their 30’s won’t take the same approach as a person in his or her 50’s.
Over the years, we have found that many people wait entirely too long to plan for retirement. They think they have enough time to catch up, just to find that this is not the case.
Here’s a brief excerpt from our IRA and Retirement Planning webpage:
“At first glance, the concept of Individual Retirement Accounts (IRA), 401(k)’s and other retirement plans seems simple enough: A structured way to save for your golden years while deferring taxes on your growing nest egg. Unfortunately, that simple idea becomes one of the most complex areas of estate planning once IRS rules are applied.”
As you can see, there is more to retirement planning than saving money. You also need to consider the impact that this will have on other areas of your life, such as your estate plan.
Life in Your 30’s
As you make your way through your 30’s, it’s easy to believe that you have plenty of time to save for retirement. And while this is true, don’t overlook the fact that you need to get started soon enough.
If you already have a retirement saving plan in place, good for you. If you don’t, you still have time to implement a plan that will put you in a good spot in the future.
Here are a few retirement planning tips to follow if you’re in your 30’s:
- Ramp up your savings. Now that you are beginning to settle down, it’s time to take your savings to the next level.
For example, if you were saving five percent of your income for retirement in the past, think about bumping this up to 10 percent. Yes, it will be a big change at first, but it can have a positive impact over the long run.
- Consider all your options. It’s easy to believe that the only way to save for retirement is via a retirement account, such as a 401(k) or IRA.
While these types of accounts are a great place to start, don’t overlook your other options. For instance, you could use a basic savings account to stock money away. Along with this, you can invest in stocks and bonds outside of a retirement account.
- Set goals. One of the biggest mistakes you can make is neglecting to set both short and long term goals related to your retirement savings.
Do you know when you want to retire? Do you know how much money you need to save to make this happen?
When you set goals it’s easier to see if you’re on the right track. And if you’re not, you can make changes on the fly.
Final tip: although you can do a lot on your own, there are benefits of working with a professional.
For example, a financial planner can help you set realistic goals. Along with this, a tax advisor will ensure that you know what to expect in regards to tax implications, both now and in the future.
And of course, an estate planning attorney can answer all your questions related to how your estate plan will be impacted by your retirement decisions.
You have plenty of time to save money for retirement, but now’s the time to get on the ball. If you begin to save today, everything will look good for you in the future.
If you’re thinking about retirement, you may also be thinking about your estate plan. Once again, when you’re young, it’s easy to overlook the importance of this. Furthermore, you may begin to think that a do it yourself will or trust is a good idea.
Before you go down this path, download our free report entitled “Dangers of Do-It-Yourself Wills and Living Trusts.”
With this in hand, you can make better decisions regarding estate planning. And when you do, it’s much easier to feel good about everything the future could bring.
- The Questions of Estate Planning, Part 6: Why - January 6, 2020
- The Questions of Estate Planning, Part 5: How - January 2, 2020
- The Questions of Estate Planning, Part 4: Where - December 30, 2019
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