Whether you’re rapidly approaching retirement age or whether you’re still in your 20s or 30s but want to plan ahead, you may have been thinking about creating a retirement strategy. Before you can enter your golden years, it’s critical that you have a solid financial plan in place. Here’s how you can establish your ideal strategy without breaking a sweat.
Save Early To Meet Your Calculated Monthly Expenses
Perhaps the most effective way to reach retirement in a state of financial comfort is to save up early and make sure you have enough to cover your expenses. To do this, start by calculating how much you’ll need to spend each month. Be sure you take into account:
- Mortgage, rent, home insurance and HOA fees
- Regular grocery bills, car maintenance expenses and other recurring costs
- Shopping, travel and entertainment costs
Make Sure You’re on Solid Financial Ground by Diversifying Your Accounts
Another important tip is to diversify your retirement savings accounts to minimize financial risk. You may want to:
- Invest in a diverse portfolio with a mix of lower-risk and higher-risk investments
- Consider opening a Roth IRA, a 401(k) or another common retirement savings plan
- Have a liquid savings cushion in case of emergencies
No matter your current age, creating a retirement strategy that works for you is important. If you’re hoping to find your ideal strategy, try calculating your planned monthly expenses and diversifying your accounts to get started.