Do you spend time thinking about retirement? Planning for your retirement is a responsibility whether we like it or not. It is also one of the easiest ways to learn about the basic principles of investment. You are never too young to start!
There was a time when you could count on Social Security and pensions to provided retirement security. Today many companies don’t even offer pensions and Social Security can only be counted on as a supplement. Your retirement program will be shaped by whether or not you are working full time or part time and by your employer. Many employers offer a 401(k) plan, which allows you to save a portion of your salary directly from your paycheck. Some employers will add to your funds by matching a percentage of your contribution.
However you plan for retirement, don’t put it off! Time has a habit of going by quickly and the sooner you start the better off you’ll be.
Don’t trust that the government will provide either. Chances are you are not going to be able to survive on Social Security alone!
Don’t think you can work forever. Believing you’ll work until you drop is just not realistic!
Be patient, it takes time for savings to grow. You need to give your savings and investments time to grow rather than moving money around seeking higher, and riskier returns.
Remember it’s not all about money either. Think about what you’ll do, where you will live and with whom. A healthy retirement also requires having a purpose to your day, something to look forward to, and someone to share it with.
Don’t assume that your living expenses will drop. Depending on your lifestyle, where you will be living and what you plan to do, retirement may easily cost as much as your working life.
Sit down with your spouse today and talk about your retirement. Dream big but start planning today!
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