Published May 26, 2023, 7:20 p.m. by Arrik Motley
Are you looking for ways to make your retirement as comfortable and enjoyable as possible? If so, then you need to start planning for retirement now. The sooner you start, the better off you'll be.
There are a few things you need to do to plan for retirement. First, you need to figure out how much money you'll need to live comfortably. This includes figuring out how much you'll need to cover your basic expenses, like housing, food, and transportation.
Next, you need to start saving for retirement. The sooner you start saving, the more money you'll have when you retire. There are a few different ways to save for retirement, including 401(k)s, IRAs, and annuities.
Finally, you need to make sure you're prepared for retirement emotionally and mentally. This includes staying healthy and active, staying socially connected, and having a retirement plan.
If you start planning for retirement now, you'll be on the right track to a comfortable and enjoyable retirement.
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are you worried about retirement you're
not alone in this video i'm going to
show you how to plan for retirement and
make sure that you have enough money to
last hey welcome to pandas finance and
today we'll be talking about one of the
most important things in life retirement
planning a lot of people don't think
about it until it's too late but i'm
gonna show you how easy it is to get
started and how you can make sure that
your golden years are everything you
dreamt of so sit back relax and let me
walk you through it number one what is
retirement planning and why do you need
it retirement planning is something that
a lot of people put off until it's too
late they think that they have plenty of
time to worry about it and before they
know it retirement is just around the
corner however if you want to enjoy your
retirement years without having to worry
about money you need to start planning
for retirement now as you near your
retirement you might have some new
dreams you might want to spend more time
with your family and travel the world
you may also want to fulfill your
commitments such as a child's higher
education or wedding fortunately
retirement planning can help you achieve
your dreams and still keep you
financially independent once you have a
plan you can enjoy the lifestyle you've
always wanted and needed number two how
much money will you need to retire
comfortably do you want to retire
comfortably but don't know how much
money you need don't worry you're not
alone according to a recent study over
half of americans don't have a clue when
it comes to retirement planning but
don't worry we are here to help how much
money you need depends on a lot of
factors such as your lifestyle
retirement goals and how long you expect
to live however most experts agree that
you should have at least 70 to 80 of
your current income saved up for
retirement you may already have a decent
amount of savings but the question is
how much will you need to live
comfortably in retirement the answer to
this question depends on your age and
level of living for example you may
think that you will retire with the same
standard of living you enjoyed when you
were working but there are many factors
that you must consider the first thing
to consider is the amount of income
you'll receive in retirement you will
receive social security but that will be
low you may also have other sources of
income some people have pensions and
annuities you need to figure out the
amount you'll spend each month in
retirement then subtract from your
savings the amount of income you'll
receive from other sources once you've
done this you'll need to calculate how
much you'll need to retire comfortably
the cost of living in different states
varies greatly so it's important to
factor in the cost of living in your new
state the higher your life expectancy
the less you'll need to save remember to
include major expenses that you'll be
able to afford some people are planning
to travel the world while others want to
spend more time with their children and
grandchildren regardless of your plans a
comfortable retirement will take care of
all of those expenses
number three how do you save for
retirement there are a lot of different
ways to save for retirement and the best
way for you depends on your individual
circumstances some common options
include 401ks roth iras and annuities a
good question to ask yourself when
saving for retirement is how much money
will you need at retirement a general
rule of thumb is 70 of your
pre-retirement income while social
security will provide a minimum amount
of benefits the majority of your income
will come from your savings during your
working years if you're worried that you
won't have enough here are some
suggestions to help you meet your goal
contribute to a pension or employer
sponsored retirement plan as much as you
can each year build an emergency fund of
three to six months of income the money
in your savings account can cover
unforeseen expenses or periods of
underemployment look at your fixed
expenses such as car payments and home
maintenance if you can consider working
part-time these extra hours will make a
big difference you can also work towards
retirement income by investing in real
estate and other types of investments
make a habit of saving a portion of your
monthly or weekly income taking the time
to track your expenses will give you a
better idea of where you need to spend
your money besides paying off high
interest debt you can also reduce
discretionary expenses the key is to
save 10 of your income each year if you
can't quite meet this goal aim for at
least one or two percent of your income
each year if you can afford to save more
it's fine if you do so
number four what are the different types
of retirement plans available to you
there's no one-size-fits-all answer when
it comes to retirement planning
different people will have different
needs and wants when they retire so it's
important to explore all of your options
before making a decision there are
several types of retirement plans
individual retirement accounts are the
simplest and are often the most
straightforward these funds are not
managed by an employer instead they are
managed by the policy holder an
individual must meet certain
requirements before being able to
participate if you have questions about
your retirement plan ask your employer
they will be able to help you make the
right choice you should also understand
that the terms and conditions of each
type of plan vary simplified employee
pension sep iras are ideal for small
businesses and sole proprietors they are
simple to set up and are tax deductible
this type of retirement plan allows
employers to decide when employees can
make contributions and what percentage
of their compensation goes into the
account these types of plans also have
the benefit of allowing employers to
contribute during high profit years
however if you are a solo owner a solo
401k plan may not be for you public
sector pension investment psps allows
employers to set up a retirement plan
that allows them to control
contributions and investments they are
often the best option for small
companies that want to remain flexible
and can't afford the complexity of a
traditional retirement plan these plans
have low contribution limits and are
voluntary in addition employees have
little say in the investment choices of
their retirement funds in contrast a
non-employer-sponsored plan gives
employees more flexibility to choose
which fund investments they want to make
with their money
number five how do you choose the right
retirement plan for you and your family
deciding which retirement plan is right
for you can be a daunting task do you
enroll in your employer's plan set up an
individual account how do you know if
you're saving enough and what about
those pesky fees here are some tips on
how to choose the right retirement plan
for you and your family you may have
heard that social security is the best
retirement plan but this plan only
replaces
40 percent of the average worker's
income after retirement many retirees
have to cut back on their lifestyles
because they don't have enough money to
pay for the things they need day-to-day
but if you plan to work until you're 65
you'll need more money than someone who
plans to retire early you should also
consider the cost of running a
retirement plan sap iras and solo 401ks
are both popular options for small
businesses scp iras allow for higher
contributions and they're easier to
manage but you'll have to do a little
research before you choose one the
higher the contribution the better
likewise you might not want to set up an
scp ira if you're a freelancer a solo
401k plan is not suitable for a growing
business you'll need to include new
employees in the plan and pass
non-discrimination testing but this
option compares favorably to the scp ira
you can also choose a traditional
pension plan these are easiest to
administer and require the least work
from the employee these plans however
are not the best choice for you and your
family number six what are the benefits
of retirement planning and how can it
help you achieve your financial goals
it's no secret that you need to save for
retirement but just how much do you need
to save and where should you put the
money and where should you put your
money retirement planning can help
answer these questions and more so that
you can feel confident about your
financial future here are some of the
top benefits of retirement planning one
you'll have a plan one of the biggest
benefits of retirement planning is that
it gives you a roadmap for the future
with a plan in place you'll know exactly
what steps to take to reach your goals
two you'll have peace of mind when
you're retired you'll want to be able to
relax and enjoy your time without
worrying about finances retirement
planning can help take the stress out of
retirement and give you the peace of
mind you deserve
three you'll be able to retire sooner if
you start planning for retirement now
you may be able to retire sooner than
you thought possible retirement planning
can help you save more money and make
the most of your resources
four you'll have more money in
retirement retirement planning can help
you build a nest egg that will provide
you with income in retirement with
careful planning you may be able to live
comfortably in retirement without having
to worry about money
five you'll be able to protect your
assets retirement planning can also help
you protect your assets in case of
unexpected events such as disability or
illness by setting up a solid financial
plan you can ensure that your money is
safe no matter what happens retirement
planning can be extremely beneficial for
you and your family with careful
planning you can reach your financial
goals and enjoy a comfortable retirement
so there you have it these are the steps
that you need to take in order to plan
for retirement and make sure that you
have enough money saved up if you like
this video be sure to subscribe and stay
tuned for more helpful tips on how to
secure your financial future
thanks for watching
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