It may sound too early but thinking about your retirement plan should be done as early as now.
Planning for your retirement may sound tedious, but with proper planning and assessing of your financial goals, it will be easy.
Here’s a comprehensive guide on how to start your retirement planning.
During your 20s is the best time to start your financial foundation since you are just starting your career.
As soon as you get your first paycheck, allot a small amount for your savings. Open a bank account solely for your savings. This could be for down payment for your car or house and lot.
Build your emergency fund
Just like with your savings, start building your emergency fund as soon as you start your career. Allot 10% to 15% of your salary to your emergency fund. You can also open a bank account for this so you won’t be able to touch it.
Be financially literate
Achieving financial freedom is not only based on how much you are earning. You should also be able to know how to manage your money well.
Read finance books and attend financial talk or workshops to strengthen your knowledge about the right and efficient financial planning.
Buy an insurance
In your 20s is the best time to buy a life or health insurance since you have less risky compared when you get older. Hence, insurance premium in this stage is more affordable.
You may opt to buy an insurance with investment so you are protected and be able to grow your money at the same time.
Start your retirement fund by allotting 10% of your income.
During this stage, you should have now a solid foundation in savings and should start to have a passive income.
Avoid debt as much as possible. If not, make sure to choose a loan product that has a low interest rate and good payment terms.
Invest in mutual funds
Start having a diversified portfolio by investing in different investment vehicles. Invest your spare money to mutual funds. Make sure to know your risk profile first before investing so your fund is aligned with your profile and goal.
Look for other source of income
Have other source of income aside from your job. If you have a hobby, such as baking or photography, make money out of it.
Start the college fund of your kids
As early as in your 30s, start funding the education of your children. You can open a bank account for this. You may also choose to buy an insurance solely for the educational fund.
Continue funding 401(k)
Increase your retirement account by allotting 12% to 15% of your income.
By 40, you are more established in life. Your finances should reflect this.
Maximize your savings
You should be able to allot more to your savings. You should have at least twice your income saved.
Eliminate your debt
By this time, you should have not any outstanding debt. Knock out car loan or home mortgage by this age.
Max out retirement options
You can meet a financial adviser to help you with other retirement options and keep you track on your retirement goals.
Review your will and life insurance
Revisit your will and life insurance if it still reflects your current situation and wishes. Make necessary changes if needed.
Retirement planning is not done overnight. It takes a careful planning, discipline, and motivation to do this financial goal.
Hit all these money milestones in every decade of your life and achieve a fruitful and wealthier retirement.
Is WooCommerce Scalable for running B2B Wholesale Store operations smoothly?
The Future of Fuel Technology – What Will Power Next-Generation Cars?
3 Things That Can Help You Manage Your Stress
What are the Reasons to Opt for Online Mobile Recharge Apps
Effective Email Marketing to boost your eCommerce sales
The 5 Best Materials for Commercial Roofs
6 WAYS YOU CAN MAKE YOUR MONEY ONLINE
What Is The Best Way To Set Your Alarm
Simple And Effective Tips To Grow Your Business To Grow From Scratch
Top 5 tips and Tricks every Unity developer should know
Planning a New Post-Lockdown Lifestyle: A Guide
Why Bespoke Kitchen Design is the Latest Favourite of the Modern Homeowners?
A Complete guide about Renewing Bike Insurance Online
How to Earn Money on YouTube in 2020 – Complete Guide
8 Key Points To Consider While Starting a Travel Company
Everything You Should Know About Dyslexia
7 Perilous Apps For Kids That All Parents Should Know About
How to Prove You Are A Socially Responsible Company
8 Benefits of Effective Car Maintenance
What Is Malocclusion and How to Treat It
Home Improvement3 years ago
How To Decorate Home With Vintage Home Accessories
Technology2 years ago
The Trend of Android TV Box
Finance2 years ago
Get Ready Before it is too late! Hire a Tax Specialist to Get Your Taxes Prepared
Home Improvement3 years ago
Best Roof Design for Snow
Digital Marketing2 years ago
5 Not Obvious Ways to Promote Your Blog
General2 years ago
What Makes XLPE Insulation so Special for Users?
How To2 years ago
Guilty of Making These Blunders While Designing Posters?
Digital Marketing1 year ago
Remarketing Made Simple: A Step-by-Step Guide