Identifying the Top 5 Retirement Strategies
September 28, 2021
September 28, 2021: If you haven’t yet given much thought to the best strategies for retirement, there are several important reasons to start your planning right away. Although it may feel too early to begin your retirement planning steps, the truth is that having a solid Retirement Strategy in place as early in life as possible can make all the difference to your financial stability down the road. Take a look at the top five strategies that can help you make successful plans.
1. Make the Most of Employer-Sponsored Retirement Accounts and Matches
If your employer currently offers a 401(k)-retirement option with a match, you may want to start taking advantage of it. Employer matches are sometimes referred to as “free money” because they allow you to grow your investment accounts without having to take more money out of your own paycheck to do so. Ask your employer about 401(k) match options today.
2. Start an Individual Retirement Account for More Investment Options
Investing early is essential for ensuring a healthy retirement since it gives you more time to take advantage of compound interest. Even if your employer doesn’t offer a 401(k), you can still get an individual retirement account, or IRA, to get some tax-free growth and invest in stocks or mutual funds. Some of the most popular types of IRAs include:
- Traditional IRAs
- Roth IRAs
- Spousal IRAs
- Non-deductible IRAs
- SIMPLE IRAs
- SEP IRAs
- Self-directed IRAs
3. Ensure Your Investment Portfolio Is Sufficiently Diversified
Having a diversified investment portfolio helps ensure you get the maximum returns on your retirement investments. You can make the most of your portfolio if you:
- Keep putting money into investments on a regular basis
- Move money to higher-yield accounts when necessary
- Place money in riskier investments when you’re younger and shift to safer, more stable investments as you grow older
- Look for stable mutual funds and index funds to invest in
- Work with a financial planner or other retirement planning professional
4. Make Sure You’re Saving Enough for Retirement Healthcare Costs
One cost many soon-to-be retirees tend to overlook is healthcare expenses. Make sure you’re saving enough money for healthcare during retirement by starting a health savings account. Also known as an HSA, this account provides tax-free growth for your healthcare savings.
5. Choose a Desired Retirement Lifestyle and Calculate Your Rough Yearly Costs
Finally, remember that your retirement lifestyle can affect your strategy and expected finances. To determine your particular strategy, you should:
- Decide on a desired retirement location
- Write out your list of retirement goals
- Estimate how much your lifestyle will cost per month or per year
- Calculate how much you need to put away per month
For anyone without a strong Retirement Strategy already in place, knowing which tips can help lead to a financially successful retirement is crucial. If you’ve been searching for ways to improve your retirement planning efforts, try giving one of these top, tried-and-true strategies a go.
About 1891 Financial Life
At1891 Financial Life, we pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.
Our portfolio is extensive, ranging from various life insurance policies to our new MYGA to support your financial needs no matter what stage of life you’re in. For more information, contact us at (855) 804-7424.