Tips for Investing in Retirement Without Sacrificing Your Way of Life Today
By: Paul Temcio
Planning for retirement isn’t just a good idea, it is essential to life. There are many reasons why we should all learn how to invest for retirement, but often times the idea gets lost among our daily responsibilities. Thinking about where and how to start can seem overwhelming. And when we think about having to put money aside for yet another expense, it feels impossible to save while still enjoying our daily pleasures and necessities. I am going to share some easy steps that you can implement as a means to invest for retirement without sacrificing your way of life today.
Learn more about what your investment options are when it comes to planning retirement so you have some knowledge, but meet with an investment broker so that they can easily help educate you on retirement investment options. Feel confident seeking help rather than trying to figure out everything on your own and becoming overwhelmed. Learn as much as you can so that you can go into your meetings prepared, but let the professionals do their job for you.
While the stock market may seem like an easy or great place to invest your available funds, it’s a bad idea to put all of your money here. Having multiple types of investments that are well thought out will allow you to be more prepared for retirement. It is a worthwhile bet to invests some of your money into stocks that you think might be a good, but get the knowledge from a professional about other options for investing and saving money long term.
If your job offers a 401K plan and matching within the 401K you must take full advantage of that. Having an employer that matches your 401K pre-tax deduction is the perfect way to have more in your investment for retirement. The fact that these funds come out pre-tax can lessen your end of year tax burden and you won’t even notice the money being taken out of your paycheck! Review the rules, guidelines and detail as it pertains to your employer based 401K plan to ensure you are getting the most out of this investment for retirement. If you need guidance go to HR and ask them for assistance.
Last, it’s important for you to start keeping track of your spending and then work on a household budget. I know, I know it the word “budget” sounds like “sacrifice” but it will actually help you meet your short term goals faster too (like a new car or vacation!) Having a budget in place for current date spending will allow you to invest for retirement in a financially smart way.
A budget will help you see your spending habits. It will allow you to take a realistic look at where you may be able to start saving money to create money to save for your future. You don’t have to give up living the lifestyle that you are used to, but there are always places where we can change a few things to spend more wisely. As well, having a true household budget when you meet with a financial adviser or investment broker will let them utilize your income for investments efficiently.
These tips and strategies are not fun but they are crucial to your future life. It is better to make reasonable and well planned decisions now to avoid a life of misery and poverty when you are elderly. Retirement is supposed to be a time when we finally get a break to live our lives to the fullest, but with no money saved it won’t go as we hope. It will go as planned though, so don’t sacrifice a fun life now, but definitely start planning now for a safe future.