For a while, not long ago, Americans looked forward to retirement. After decades of hard work, they finally enjoyed themselves. But as life expectancy and cost of living continue to rise, fewer people can expect a trouble-free retirement. In fact, one-third of those close to it have no savings to speak. Consider the following retirement plan tips to help reverse this disturbing trend.
1. Start saving today
According to government data, more than one-third of Americans rely on social security as their main source of income. While the popular safety net is certainly helpful, it does not cover the cost of an accident. For this reason, all retirees must have something in the bank to make up for the inevitable shortcomings. Whether you start earning $100 a month or a single jagged, it's important to be pious for years to do so. You can be surprised by how much you accumulate on regular contributions and interest payments.
2. Reduce expenses
Even if you don't have much extra spending, there is always a way to cut expenses without much sacrifice. Buying cheaper cars, health and life insurance will definitely help lower your monthly bills. You should also check the cost of your phone, internet and cable TV. Last but not least, you can search for ways to save online. Whether it's buying food, clothes or school supplies, there are plenty of offers on the internet.
3. Contribute your 401[k]
If you adopt the 401[k] plan and most of them are adopted, you should participate. Not only do these programs offer greater savings potential than regular bank accounts, but they also offer your employer the option to match your donation. Although not every boss is so generous, more and more bosses are.
4. Open IRA
Designed to help you build eggs, the right individual retirement account [IRA] can work wonders. For most workers, traditional IRAs allow them to be tax-free. More importantly, investment awareness can also delay tax payments until a long time later. There is also a Ross Individual Retirement Account, funded by after-tax donations, allowing for tax-free income and withdrawals. Since these accounts can be complex, you should consult a retirement planning professional to find out which IRA is best for you.
5. Delay social security
The longer you postpone receiving social security payments, the more you will receive in the future. Even if you have only been delayed for a year or two after the earliest age, you can start receiving benefits [62] and your monthly check will be very good. In fact, you can extend your payment to 70 years old and get more income in your later years. Currently, you can retire at the age of 67 and above.
Follow these simple retirement planning techniques to help you prepare for the golden years.
Orignal From: Five basic retirement plan skills
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