Planning for retirement in the 21st century

When you reach retirement age, you’ll likely have Social Security income and possibly a pension, but you have to ask yourself, will it be enough? Will you have to top up your retirement income? Will you continue to live in your current home or will you move? Do you want to travel? These and many other questions will need to be answered as you prepare for retirement.

Retirement planning should start as soon as you start your first job, but most of us are too busy raising a family to think about something that far off. Besides, we have a lot of time.

It’s hard to think about retirement when you’re wondering where to find the best day care for your child. But now is the best time to look at your retirement plan or 401(k) at work and contribute as much as you’re allowed or can afford each pay period.

What is retirement planning? It’s the effort you put in to make sure you have enough money to live comfortably after you’ve quit your job and want to ease into your work. There’s nothing complicated about it, but it can be extremely difficult to create and start a smart retirement plan.

As soon as you can, you should start putting a percentage of your earnings into retirement. These investments can be in pre-tax or after-tax dollars. Use a combination of IRAs, mutual funds, stocks, bonds, the money market, or other investment vehicles your financial advisor may suggest. The secret and goal is to develop the habit of investing regularly and resist any temptation to use the money for anything other than retirement.

If you’re older and just starting to think about retirement, there may be a few ways to make up for lost time. Starting young gives you more time to accumulate money, but with a good investment strategy, you can sometimes earn enough for a comfortable retirement.

Most people can create a good retirement plan, but some may need to find a reputable financial advisor to discuss their retirement needs, create a plan, and stick to their plan.

New pension strategy in the 21st century is to work as hard as you can. Seventy may be the new sixty-five. Almost every study since the Great Crash of 2008 shows that more people are considering working longer or beyond retirement. Chances are, you may or may not need to work well into retirement.

Retirement income will likely determine where you live, whether you can fulfill your retirement dreams, and whether you need to continue working. More and more men and women are starting second careers after retiring from one job. This takes retirement planning to a whole new level.

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