Have you started to plan for retirement? Are you on track to live a comfortable life? Use these tips to get financially fit for the future.
- Social Security. Go online at www.ssa.gov/mystatement to view your earnings history and estimated benefits.
- A will. Do you have a will? Dying without a will leaves a real mess for your family. Visit an estate planning lawyer and get your affairs in order.
- Credit Card Interest. How much interest do you pay each month? The perfect answer is “zero.” Carrying a monthly balance gnaws through your money. My father taught me you should never buy anything unless you have the money to pay for it. Every time you pay interest, you are taking away money you could be saving for retirement.
- 401(k). If your employer sponsors a 401(k), make sure you participate. Even a small amount each pay period will aid in your retirement.
- IRA. An IRA (Individual Retirement Account) is a great way to save for retirement. Try each year to contribute the maximum amount.
- 70%. A general rule of thumb is that you will need 70% of your current income each year to live as well as you do now in retirement.
- Inflation. Count on inflation of 3-percent when planning for retirement. What costs $50,000 now will cost $67,195 in 10 years, and $90,305 in 20 years.
- $5 bills. Save every $5 bill that you touch. My husband and I have done this for years. We put ours in a box and on New Year’s Eve we open the box to see how much money we have saved during the year. We average $1000.
Take a financial assessment of your expenses and savings to determine if you’re on track for a comfortable retirement.
Nancy Roe
Author
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