If you hope to one day retire early, it’s important to begin planning now. Below you’ll find a few quick tips to help you get started.
Know Your Numbers
What is your current monthly budget or cost of living? Do you plan to live more modestly in retirement, the same, or more extravagantly? Calculating how much you want to save is critical. You can find a range of free online retirement calculators from extremely simplistic to very complex. Click here
to try a detailed calculator at AARP. As you save, you’ll also want to consider accounts and investments that will help you reach your goal sooner. If your employer offers a 401(k), try to max out the account each year. If you can’t do that, at least contribute the maximum amount your employer matches. An Individual Retirement Account (IRA) is another great way to save for retirement and it may have tax-deferred earnings. *
Stay Out of Debt
If you have debt, begin to eliminate it as fast as you can to increase your savings potential. One way to go about this is simple: pay minimum payments on all of your debts except for the smallest one. Then, attack that one with intensity! Every extra dollar you can get your hands on should be thrown at that smallest debt until it is gone. Then, attack the second one. Every time you pay off a debt, you add its old minimum payment to your next debt’s payments. For a debt reduction worksheet, click here
. Creating a monthly budget can also help you stay on track and stay out of debt.
Seek Expert Advice
Planning your future retirement depends on several factors that should all be taken seriously. An expert can help you create a comprehensive plan that is tailored to meet your individual needs. If you would like customized advice on how to plan for retirement, FORUM Private Client Group
can help. You can call 317.558.6322 or email email@example.com.
*The above is not intended to be tax advice, was not written by a tax professional and is informational only. Please consult a tax advisor for your specific situation.