Understanding the Changing Retirement World

Living in your 60s used to be a wonder, but today’s retirees are blossoming well into their 80s. Although long life is a goal for most people, it poses a dilemma on the financial side. Social Security only pays a small monthly amount that’s certainly not livable as a standalone income. Most people rely on their retirement accounts to shore up their entire retirement. Determining the right contributions and finding a way to save them for retirement is everyone’s future dilemma. Start your evaluation of the future now to see comfort on the horizon.

Saving Early is Still Critical

Retirement is a world away when you enter your 20s, but contribute to the 401(k) anyway. Even if you’ve put off contributions, start them at anytime to reap the benefits in retirement. As more money sits in the 401(k), it accrues interest. Compound interest is your goal so the more years in savings is better for any investor.

Evaluate your Auto Insurance Needs

Unless you have a brand new car, you don’t need full coverage on its value. Consider a reduction on the insurance policy, especially if the vehicle is 10 years or older. The extra funds could be placed into a retirement account, such as an IRA. Even consider other extraneous insurance costs and put them toward retirement.

Roll it Over and Keep Contributing

When employees leave a job, their 401(k) account often remains there. Although it’s probably gaining some dividends, it performs better if you have some input into its investing. Roll over the funds into an IRA. You choose the investment options and can alter them whenever necessary. Contributions are always allowed into IRA’s, along with automatic deposit options, so keep adding to this pot.

Bonds or Stocks?

Stocks are certainly more exciting for investors when they perform well, but there’s more room for loss too. As you grow older, look for more stable investments through bonds. Their value doesn’t jump dramatically, but you’re looking for steady growth as you enter retirement age.

Whether you speak to insurance agents in Austin or a banker in Los Angeles, personal retirement financing is unique to each person or couple. Listing all debts and assets is a good place to start as you decide on a comfortable retirement fund. Money should be the least of your worries as you enjoy the golden years.

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