For most people, the prospect of retiring can be an inviting proposition. Sadly, however, far too many people underestimate the amount of money they will need to maintain anything even remotely close to their current standard of living. Worse, some people fail to make any serious plans of any kind. To avoid having to rely on the mediocre income provided by Social Security, here's some advice for retirement planning Rockland MA workers need to consider.
Truly successful plans are often those that start the earliest. Workers tend to be in the marketplace for forty or fifty years at most. That's a small amount of time to prepare to retire, given that savings are usually but a fraction of the dollars earned. Wherever and whenever possible, workers should start their planning as soon as they join the workforce.
The key to successful plans is most often found in the use of sound investment strategies. While most of us lack the ability to throw hundreds of thousands or millions of dollars into the stock market, almost everyone can manage to utilize some investment vehicle to put his money to work in those younger years.
Risk reduction is the key to successful investment, of course, and that most often translates into diversification. Smart investors utilize a combination of strategies that focus on stocks, mutual funds, and bonds. The exact mix of these different types of investments will evolve over the course of an investor's life, with a greater reliance on somewhat riskier investments in the younger years and a migration to safer vehicles as he gets older.
Many companies offer 401(k) plans that can not only provide access to investment markets, but that can also help to lower tax obligations. Often times, employers provide contributions that match those of their employees, effectively doubling the amount of money invested. People often choose to participate in these plans because they are among the easiest to manage.
To properly plan any retirement, it may be wise to also look at a person's current standard of living. Often times, people increase their spending levels as they age and make more money. The temptation to "keep up" with everyone else is often unavoidable. The problem is that the drive to acquire more things can make it even more difficult to maintain that standard of living after retirement.
It is also wise to learn to manage money efficiently while working. The average person lives from paycheck to paycheck, constantly spending every dollar he or she receives. While low incomes and other factors can sometimes make this a necessity, in many instances it is merely a matter of habit and an inability to live within one's means. Wasteful habits can dramatically reduce the money available upon retiring.
Those impoverished citizens are often left with little choice but to rely on government programs. For everyone else, however, the idea of retiring in a comfortable manner is one that can be turned into reality if the worker starts the process early in life. All it takes is control over spending, a good investment plan, and laser-like focus on the goal.
Truly successful plans are often those that start the earliest. Workers tend to be in the marketplace for forty or fifty years at most. That's a small amount of time to prepare to retire, given that savings are usually but a fraction of the dollars earned. Wherever and whenever possible, workers should start their planning as soon as they join the workforce.
The key to successful plans is most often found in the use of sound investment strategies. While most of us lack the ability to throw hundreds of thousands or millions of dollars into the stock market, almost everyone can manage to utilize some investment vehicle to put his money to work in those younger years.
Risk reduction is the key to successful investment, of course, and that most often translates into diversification. Smart investors utilize a combination of strategies that focus on stocks, mutual funds, and bonds. The exact mix of these different types of investments will evolve over the course of an investor's life, with a greater reliance on somewhat riskier investments in the younger years and a migration to safer vehicles as he gets older.
Many companies offer 401(k) plans that can not only provide access to investment markets, but that can also help to lower tax obligations. Often times, employers provide contributions that match those of their employees, effectively doubling the amount of money invested. People often choose to participate in these plans because they are among the easiest to manage.
To properly plan any retirement, it may be wise to also look at a person's current standard of living. Often times, people increase their spending levels as they age and make more money. The temptation to "keep up" with everyone else is often unavoidable. The problem is that the drive to acquire more things can make it even more difficult to maintain that standard of living after retirement.
It is also wise to learn to manage money efficiently while working. The average person lives from paycheck to paycheck, constantly spending every dollar he or she receives. While low incomes and other factors can sometimes make this a necessity, in many instances it is merely a matter of habit and an inability to live within one's means. Wasteful habits can dramatically reduce the money available upon retiring.
Those impoverished citizens are often left with little choice but to rely on government programs. For everyone else, however, the idea of retiring in a comfortable manner is one that can be turned into reality if the worker starts the process early in life. All it takes is control over spending, a good investment plan, and laser-like focus on the goal.
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