Too often, people find themselves facing down their fiftieth birthday and suddenly realize that they have forgotten to plan for their retirement. After you have processed through the panic and fear that seizes you, it is time to get down to work. It’s never too late to start planning for your retirement, and this article will show you where you need to get started.
As with any big financial decision you need to make, it is important to find a knowledgeable and trustworthy financial adviser or estate planner who can walk you through the process. They will be up to date on the most recent tax option and programs that you can take advantage of, and help walk you through step by step to get the best benefit for your money. That being said, let’s get down to business.
When you begin your retirement planning in Minneapolis, you need to figure out exactly how much you want to save, then figure out how much is possible for you to save in the time you have left. Sometimes these figures are the same easily, sometimes reaching your savings goals will take a little bit of sacrifice now for a better life later, and sometimes you will have to be realistic and lower your savings goal.
Although it will vary for each family, a good goal is to save one million dollars before you retire and invest it wisely. This will give you a decent return (the stock market and mutual funds average between 7% and 12% returns each year) and allow you to continue to enjoy a comfortable lifestyle after retirement. If your income is very low, or you are very close to retirement, this figure may be way out of your reach and that’s okay. Work with your estate planner to come up with what will work best for your family.
After you have reached your savings goal, you need to decide how you are going to save all that money. There are many options available to those completing their retirement planning. Most options are going to have the term ‘IRA’ after them, Roth IRA, traditional IRA, etc. IRAs are Individual Retirement Accounts and are taxed with special rules.
The process of retirement planning in Minneapolis does not have to be stressful or complicated. By educating yourself during each step, you will be able to enjoy a peaceful and happy retirement!
