Being prepared for retirement is one of the last things we think about when we start our careers and as we move through life. We are busy paying mortgages, buying houses, paying for tuitions, and hopefully taking great vacations. The sad truth is that too many people just aren’t prepared for retirement. In a new segment of Don’t Die Poor I am going to discuss what you need to know to retire with enough money to survive and even play in your wonder years.
To effectively prepare for your retirement, you should have a good idea of what you are going to need to survive. Yes – right now let’s just survive. Your kids should be through school and on their own and your mortgages and loans should be winding down or paid off by that point. Essentially, you are looking at cost of living. Some experts recommend that you take 65% of your current expenses to quantify what you would need in retirement. If you intend on retiring in the lap of luxury, this quick evaluation obviously doesn’t work.
- Contribute to your 401(k)
- Max out your Roth IRA
- Pay down debt at a rate so your paid off at retirement
- Understand your Social Security benefits
- Be Prepared to Downsize
- Save, Save, Save!!
I will be writing a series of posts dedicated to these steps which you can find by clicking here. In the meantime, spend some time figuring out what you need to retire and how you’re going to get there.
The last thing any body wants to do is work hard, retire without planning properly and eventually, Die Poor!!