Planning for retirement is important, and if you’re not yet retired, there are still options for you to consider. The best time to start is when you’re very young, because that gives you more working years where money can be saved. That means you don’t have to put as much in every month to have a lot at the end, and you can also take a few more risks that could help you build wealth faster. But if you didn’t start saving in your 20s or 30s, there’s still time. Also, even if you’re already saving, you may want to make some changes to how you’re doing things in order to make sure you’re getting the most for your investment dollars. That way, you can arrive at retirement ready to enjoy all it has to offer, instead of being worried about how you’re going to pay for the lifestyle you’ve been enjoying.
Planning at 40
In your 40s, you’ll want to be more serious about your investing for retirement. It’s time to take a hard look at where you’re at and where you want to be. Are you on track? Is the amount in your portfolio less than you wanted or expected? If you don’t have what you need at this age, there’s still time to make some changes. Consider how far off you are from where you’d like to be, and then work with a professional to make a plan to get there. You can usually catch up quickly if the amount you’re off by isn’t a lot. If it’s a big difference, you may need to reevaluate your strategy and make some serious changes. Even though it can be tough to scale back your spending or make changes to your routine, it can be well worth the effort if it gets you caught up and back on track when it comes to your retirement goals.
Planning at 50
As you reach 50 and beyond, your strategy will likely need to be adjusted again. At that point, your focus will become less about catching up and more about securing what you already have. That can mean some changes, but mostly what you want to do is move toward investments that aren’t as risky. That will mean slower growth, but it will also mean less opportunity for loss if you aren’t doing as well as you would have hoped financially. You want to keep growing your wealth, but you also want to reduce the chances that you could lose a significant portion of it by taking too much risk.
Planning at 60
At 60, your time until retirement is getting short. You probably have most of your plans in place, but it wouldn’t hurt to go over those plans again and have a good idea of whether you’re where you want to be or not. Depending on where you stand financially, you may need to make some changes and adjustments for the future. For example, their 60s can be the time that people downsize and choose a smaller home or plan on doing some traveling. They may also make arrangements for long-term care and other types of concerns, so they can protect the money they have in the event that something goes wrong with their health. There are a lot of options to consider, and the more prepared you are as you enter retirement, the easier it will be financially for you to adjust to.
Disclaimer: The information contained in this article is for general information purpose only and is not intended to be a source of investment advice with respect to the material presented. The ideas contained in this article should never be used without first consulting with your financial/tax/legal advisor.