March 29, 2024

Retirement Planning 101 | How to Plan for Retirement



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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