No one is happy to talk about a time after retirement. But it is a fact of life that you have to secure a lot of money for the time when there is no steady source of income to maintain your lifestyle. Knowing about retirement readiness is prudent for you so that you are left with enough money to fulfill your desires and to look after your health in old age. There are numerous retirement quotes, but only one of them nails the truth hard on the head. You retire from work, but not from life. This means that you will stop working but you continue to live long after your retirement.
Make the most of your 401k
There is no one formula of retirement planningthat fits all people given that there are unique circumstances and requirements of different individuals. Your current age, years left for retirement, and your present lifestyle dictate what you need to do to in your specific case to create wealth for use after retirement. 401k that is sponsored by employers and based upon your contributions is still the most popular of the retirement plans available in the country.
Start with your retirement plan early
Most of the individuals are today opting to start with this retirement vehicle earlier than their parents did a generation ago. One of the best advices that you will ever get to create wealth for your retirement age is to start saving as early as possible.
Shift to a job that offers retirement benefits
If your employer does not have a suitable retirement plan in place for the employees, you need to switch to a new job where there are several plans offering retirement benefits. Contribute generously towards your 401k as your employer matches your contributions to increase money in your retirement plan. Make the most of your 401k to earn free money from your employer.
Calculate how much you will need every month after retirement
It is necessary to get an estimate of the kind of money you will require every month after retirement to maintain your present lifestyle. Most people are surprised to know that they would need a fund of nearly $1000000 by the time they retire to be able to fulfill all their desires and to look after their health in old age. This is a number that is very hard to achieve unless you are prepared to do serious retirement planning and start early in your life.
Take informed decisions
It goes without saying that you want to maximize returns on your savings. But you cannot choose the right strategy or investment tools if you are not aware of the options available to you. It is prudent to ask for help from a professional who knows a lot more about the investment vehicles. This will help you considerably in your retirement planning.