How to Plan for Retirement Now

Most of us dream of living our retired lives with ease and doing the things we have worked our entire lives to do.

However, without retirement funds, you will find yourself trying to survive off of Social Security or, even worse, never being able to retire.

Whether you are in your twenties or forties, planning for retirement is essential for your life as you age.

If you are not currently doing so, it is vital to learn how to plan for retirement.

Check With Your Employer

If you have not already done so, check with your employer about their 401K offerings.

A 401K account is a great way to build your retirement fund without putting undue financial stress on yourself or your family.

In some cases, a 401k is the absolute best option for your family since employers will often do a contribution match.

Yes, they will match the amount of money you contribute!

If your employer does not offer a 401k, several options are great for making a suggestion to them.

Companies such as Bettermint offer 401k plans that are priced well for employers who are new to offering 401k plans.

These are well worth checking out, especially if you have $0 money set aside for retirement.

READ: Why You Shouldn’t Ignore Your 401K

Open an IRA

An IRA or individual retirement account is a different retirement planning option.

You will need to decide if it is right for you.

Even if you have a 401k, it is well worth it to open an IRA.

Depending on the type of IRA you open, you may pay fewer taxes from your paycheck.

The catch with an IRA is that they have maximum deposit limits each year.

These limits do increase slightly as you get closer to retirement age.

Even with the limitations, it is well worth taking the time to open an IRA and fund it each year.

Once you retire, it will work with the money from your 401k to provide the lifestyle you dream of having.

Invest in Stocks

While stocks should never be considered a guaranteed thing, they can go a long way toward planning your retirement if they are correctly invested.

To maximize the return you will get, look for stocks that offer dividends.

These stocks will earn when they rise in value and pay you a portion of their earnings every so often.

It is a great way to add a little extra “free” money to your account.

Reinvest your dividends in some way to continue to grow your retirement funds.

READ: Easy Ways to Invest for Beginners

Maximize Your Impact

We have mentioned how an IRA and a 401k will work together to provide a comfortable retirement lifestyle.

Still, the different retirement options you create can only do so if you use them to their fullest extent.

For instance, if the yearly maximum deposit amount for your IRA is $5,000, but you only deposit $2,000, you are leaving retirement money on the table.

This is money that could be earning interest or investment dividends to help build your retirement funds to even higher dollar amounts.

By using each of your options to the maximum you are allowed, you will also maximize the returns you get.

Save Money Whenever Possible

The best retirement options in the world can always use another layer of protection.

This is why it is crucial to continue to build your savings.

This could mean doing everything possible to save money in your daily life, stashing cash in a savings account, or any other action that saves money you can put away for retirement.

If stashing cash in the bank, it is recommended you use a money market account.

These accounts are made for longer-term savings.

Because the money deposited is invested at little risk, you are paid a higher interest rate.

This higher rate will ensure your money grows at a higher rate, precisely what you want in savings, which is earmarked for retirement.

READ: 5 Ways to Save Automatically

Get Help

Finally, before making any significant decisions regarding your retirement plans, it is always a good idea to speak to someone more knowledgeable.

Scheduling an appointment with a financial advisor will help give you a clear picture of your current financial situation, as well as receiving clear and solid advice on how to improve it for retirement.

Hiring a financial advisor may seem excessive to some.

However, it never hurts to have additional help on topics you do not know too much about.

Planning for retirement now rather than later is good planning.

It should be done around the same time you buy life insurance.

None of us want to think about getting older, but the simple truth is that it happens to all of us.

Without proper retirement planning, you may not live out your years in comfort but rather struggle just to make ends meet.

None of us want that, but the only real way to prevent it is to start planning for retirement before becoming a real worry.