If there is one truth in life, it’s that we are all getting older. Sooner or later, our bodies will not be as productive and we may need to slow down a bit. Most people are inclined to wait until getting near to retirement age to start preparing for retirement; but, the best time to start getting ready for retirement is while we still expect to have an income for several years to come. During retirement, our most likely form of income would generally derive from money that we have saved or invested in retirement products. If you haven’t started saving for retirement, it may be a good idea to preparing now! Here are a couple of tips to help you catch up on retirement savings!
The first step in preparing for retirement is to get rid of as much debt as you can. Your net worth equals your assets minus your liabilities (what you have minus what you owe). You will want to have a positive net worth when you retire, which means that what you own is free and clear of any debt. In order to do this, start by paying down as much debt as you can while you have an active income flowing in. This way, when you are ready to retire, you will own most of your larger purchases, like your house or your car. Another way to help you to enjoy your retirement is to pay off your credit card debt. You could start by paying off the credit cards with a higher interest rate, followed by any other cards you may have.
A smart way to catch up on retirement savings is to transfer about 10% of your wages or other periodic income into your savings account, and another 2% in your retirement fund. If this isn’t possible right now, try to put away as much money as you can so that you can build your savings as time goes on. As long as you are saving something, you will be on the right path to a secure retirement! If you have a 401(k) account, you might want to consider increasing the percentage of your check that is deposited into the account every payroll. Some people suggest you begin depositing 2% of your payroll amount into your 401(k) account and, after about three months, increase your deposit amount by another 2%. If your employer does not offer a 401(k) plan, you might want to consider opening an individual retirement account at a low-cost brokerage firm. In either case, with sufficient planning, you might be able to begin working on a nice nest egg for your retirement.
If you think you’re falling a little short in your retirement savings and believe you can work past the general retirement age, then it may be beneficial to work a couple more years. If you’ve been with a company long enough, you may be able to continue working until you are ready to retire. If not, there are many companies that are willing to hire older employees.
Start saving now to enjoy your retirement! DRB Capital hopes that you have the opportunity to plan ahead in order to have a happy and secure retirement. If you are receiving payments and are stressing about your retirement savings, call DRB Capital today and see if you qualify to exchange your structure settlement or annuity payments for a lump sum of cash! Call us today for a free quote at 877-894-4541.