Retirement is an exciting time of life, when all your life's work has led up to not working and enjoying it. However, it pays to put some things aside so that your retired life can be a little more comfortable. Here are a few things to think about when you are preparing for the retired portion of your life.
Annuities are investments that are bought at one time, held stationary for a defined period, and then begin to pay out at a certain age. For example, you can purchase a $25,000 investment at age 50, have it held for 10 years, and then schedule it to start paying out $100 a month once you reach age 60 to ensure that you have some pocket money each month. Using these to plan ahead for your future helps, especially if you are someone who has a tendency to burn through money before you can invest it. Many financial institutions offer different plans and options, so it is worthwhile to check out a bunch of them to see what is right for you.
This seems like a fairly simple idea, but becomes more complex as you age, generally speaking. If at 25, you decided to put away $20 from every paycheck, being paid bi-weekly, at the age of 60 you would have saved $18,000. By saving $100 from every paycheck, you would have saved $91,000. Starting early helps, but even so, just starting will make sure that you have money saved up when you hit the golden years of retirement. The amount each paycheck may change depending on exactly what you have available and what bills you have to pay, but every little bit helps!
Clear your debt
This is a hard one, but being able to clear your debt is a big deal these days. Whether it be student loans, car payments, mortgage payments, or credit card debt, it can really hang over your head. By minimizing the amounts that you have to pay every month, you can open up other avenues and ultimately give yourself more leeway and money for when you will really need it. If you are having trouble with managing your debt, talk to a financial planner or financial advisor. It doesn't cost much, if anything, and will help you get on the right track to paying everything off.
There you have it, three tips to help you plan for your golden years. If you work it all out now, you will have nothing to worry about when the time comes, and will be able to fully enjoy your retirement! For more information about annuities, talk to a professional.