Retirement Planning 101
The landscape of retirement planning is changing, and those that are getting their start or trying to build their portfolio may have some challenges ahead of them.
Retirement Planning is Starting Later and Later
The targeted age of retirement is now nearing 73 as individuals begin planning for their retirement later in life. Only about half of those under the age of 29 even have a job today, which leaves retirement planning at all a little unfeasible. If you start your retirement plan 10 years later, you will need to retire 10 years later.
How Small Changes Can Help
Despite the resistance towards retirement planning, there are actually more and better options for retirement funds today than ever before. Many retirement accounts are performing very well, and targeted retirement accounts allow investors to target their funds towards their projected date of retirement. Financial advisors suggest that those planning for their retirement make an immediate if small change.
Using Automated Systems for Retirement
By using a set it and forget it system, most people will not think about the money they are putting aside. This makes employer-based retirement plans especially helpful, but there are also personal retirement plans that can take scheduled deductions. The most important part of a retirement plan is to simply put in money, however small an amount, and never touch it again.
Everyone knows that retirement planning is best done as soon as possible, but most people still procrastinate. If you want to ensure that your retirement is adequately planned for, you need to act now before it’s too late. Thanks to the miracle of compounding interest, every contribution you make now is worth many times more than the contributions you could make later.