If the daily grind of work constantly gets to you, you probably look upon retirement as a wonderful prospect. Freed from the confines of your day job, you can at last pursue interests that you’re truly passionate about. Maybe that means finally developing a set of musical skills. Maybe it means traveling.
Or doing volunteer work. But of course, making that happen requires plenty of wise financial planning. Otherwise, your newfound excitement upon retirement can quickly turn into disillusionment as you struggle to make ends meet.
Remember, retirement means the foregoing of the steady income you enjoy as a member of the force, so you need to create the means to provide for yourself when you’re ripe in age. Therefore, any retirement strategy should include the building up of funds and income streams.
After all, Social Security itself just won’t cut it and company pensions are going the way of the dinosaur. These are some of the best routes you can take: www.titleloans-wisconsin.com/locations/
Or doing volunteer work. But of course, making that happen requires plenty of wise financial planning. Otherwise, your newfound excitement upon retirement can quickly turn into disillusionment as you struggle to make ends meet.
Remember, retirement means the foregoing of the steady income you enjoy as a member of the force, so you need to create the means to provide for yourself when you’re ripe in age. Therefore, any retirement strategy should include the building up of funds and income streams.
After all, Social Security itself just won’t cut it and company pensions are going the way of the dinosaur. These are some of the best routes you can take: www.titleloans-wisconsin.com/locations/
Build up your Savings Account
An obvious-but-vital one. The great part about a savings account is that it’s money in the bank, so you can count on it when you need it. It’s important that you have a solid cushion to fall back on. As far as options there is the always-trustworthy 401(k) account, which boasts such benefits as an immediate tax deduction and contributions from your employer. You’d also do well to put your money in an IRA, which lets you save on either a tax-free growth or tax-deferred basis. If you need help figuring out how much you need to save, use Kiplinger’s free retirement savings calculator tool.
Develop That Passive Income Stream!
Here’s the key to living well in retirement. Of course you can do well living on savings if you plan wisely, but if you want to have constant money coming in without the fear of it eventually running out (after all, medicine is constantly improving—what if you save for a 20-year retirement and end up living to be 150?), you need to build income streams. You can do that through all kinds of methods, including investing in stocks that give you high dividends. There’s also:
- Rental property. If you buy a house or other form of rental property, you can lease that and have it pay itself off through the course of the years. Once it’s all clear, that money is completely yours and you just have to cover costs like insurance and maintenance. When you’re in old age, rent collection is a great way to make money with minimal effort.
- Online affiliate marketing. If you’re internet savvy, this is also a neat work-from-home solution. It will take some time to build up a content site that brings in good traffic, but once you’ve established a strong niche site that gets good traffic from always-relevant keywords, you have a cash cow that can keep giving ad infinitum.
Invest in your Kids
This one may seem out of place, but it’s a very true principal. If you have children, you need to invest on them financially, intellectually, and emotionally. Make sure they get a good education and professions and teach them to be hard-working, honest, responsible members of society.
Not only will this save you plenty of gray hairs, but it will almost ensure you’ll be free of having to take care of them when you’re a senior citizen.
There are a lot of people who don’t follow this advice who end up with their kids still at home asking them for money well into adulthood. The people who apply this advice well end up with kids who take care of them. So again, invest in your children.
Planning for retirement is important stuff. As to when you decide to retire and under what circumstances, that’s up to you, of course. Love Being Retired has a great article on helping you decide just that. But by taking the right steps before that time comes, you can improve your chances of having a truly fulfilling retirement experience.
Not only will this save you plenty of gray hairs, but it will almost ensure you’ll be free of having to take care of them when you’re a senior citizen.
There are a lot of people who don’t follow this advice who end up with their kids still at home asking them for money well into adulthood. The people who apply this advice well end up with kids who take care of them. So again, invest in your children.
Planning for retirement is important stuff. As to when you decide to retire and under what circumstances, that’s up to you, of course. Love Being Retired has a great article on helping you decide just that. But by taking the right steps before that time comes, you can improve your chances of having a truly fulfilling retirement experience.