Everyone, regardless of their age, should be investing for retirement. It is something that should be started as soon as you begin your working career and continue through retirement. However, the way that we actually invest for retirement will change as time passes.
Much of these changes are created because of pay changes. However, one must also take into consideration the amount of working years left until retirement. Assets and debt also play a factor in changes to your retirement strategies over the years. All of these items are important to consider as you are growing older. Below, we will take a look at the different areas of life and determine the keys to investing at each level.
This is the point in time when you will begin to build a strong financial base for the rest of your life. Make sure you are taking advantage of the benefits provided by your place of employment, such as 401k and any pension opportunities.
To make the process of saving for retirement easier as you age, make sure you start as soon as you can. You will find that you will never miss the funds that you are investing in your retirement when you start early. Also, as you receive pay increases, make sure you are increasing your retirement contributions.
By now, you are probably getting pretty cemented in your career. If you are planning any changes to your place of employment, make sure you take a look at the rules regarding 401k vesting. You should attempt to stay with your employer until you are fully vested in your 401k plan, if possible. This simply means you will have access to your entire 401k balance.
During your 30s, you should also be taking proactive steps to advance your career. This will help you gather more money that you can invest and put you in a better position to progress even further in the future at the same time.
Now is the time in your career when you need to be focusing on eliminating as much debt as possible as well as growing your assets. You should be fully investing at this point in your life and have a healthy mix of stocks and bonds in your portfolio to help you save safely for retirement.
Many adults in this age bracket are now looking at children who are heading off to college soon. If this is the case, you may want to think about downgrading your home to help give you more money to save for retirement.
During your 50s, you will want to really buckle down and begin thinking about retirement. You should sit down with a financial advisor regularly to help you determine how much money you will need to make retirement happen.
This is the time to begin finalizing your retirement strategies, learning what you will need to do after you retire and making sure you have the funds in place to enjoy retirement fully. Create a plan regarding what you would like to do when you retire so you are able to save towards specific goals.
60s and above
When you reach your 60s, you are probably pretty close to making your hard work pay off. During this decade and after, make sure you are analyzing your assets and retirement accounts to make sure they are safely protected throughout your retirement. You will also need to spend time learning about how to withdraw your funds and when you are required to do so.
These are just some of the things you should do over the course of your life to be ready for retirement. To learn if you are doing enough or if you are in a position to retire now, please contact us today. We will help you build your strategy so you have the best outlook possible.