No matter what stage of life you’re in, it’s never too early to start saving money for the future. The earlier you begin saving money for your retirement, the easier it will be to enjoy the lifestyle you deserve. In this article, we list a few questions to help you prepare a retirement plan that offers peace of mind and financial security.
To get started, it’s important to consider what your ideal retirement looks like. Do you want to move to a new city or state? Do you want to travel, buy land, or spend time with family? Think about what your ideal week would look like in retirement and how much money you’ll need to achieve your goals. Many experts recommend having 8-10 times your annual salary to live comfortably in retirement. Are you on track to have that amount of money available by the end of your working years?
With this, consider any medical obstacles you might face later in life. Healthcare costs are projected to rise over time, and you’ll need to be prepared for the medical costs that might arise as you age. One way to prepare for healthcare costs now is to consider a Health Savings Account (HSA). You can start contributing to this account immediately, and your money will grow tax-free to cover healthcare expenses in the future.
You might also consider the potential of needing a long-term care plan. These costs can be high but having a life insurance policy can help alleviate this cost. A life insurance plan like critical illness insurance can protect you against unexpected healthcare costs. If you are diagnosed with a critical illness, you would receive a lump sum benefit to cover your medical bills, mortgage, debts and expenses. This money could even be used to fund experimental treatments not covered by your health insurance.
It’s never too early to start saving money for retirement. The first step in creating a retirement plan is looking at your current and future financial situation and determining how much you can contribute to retirement savings. Whether you are contributing to a 401(k), IRA, or a life insurance policy, there’s an option available for any budget. The main goal is to invest intelligently – you’ll need a diversified portfolio and a solid plan for your savings account.
You might be surprised to know that many people aren’t taking this crucial step. According to the Department of Labor, fewer than half of Americans have calculated how much they need to save for retirement. It is easier than you think to do a checkup on your budget and savings goals, so don’t hesitate any longer to get a plan in place!
During your working years, you can accumulate retirement assets through Social Security, pensions, employer-sponsored retirement plans and other savings vehicles. Once you establish these accounts, whether with your employer or on your own, you’ll want to regularly check on these accounts to ensure they are maximizing your savings potential. Inflation and the type of investments you choose can affect how much money you’ll have access to later in life, so be sure to stay up-to-date on how your accounts are performing.
Contributing to your employer’s 401(k) plan is another smart way to start investing in the future. With automatic deductions and the potential for your employer-matched contributions, investing in your 401(k) plan is a simple strategy to save money for retirement.
The earlier you begin saving for retirement, the more prepared you’ll be to create the lifestyle you desire. One way to start saving early is to get an indexed universal life insurance policy (IUL) or an annuity.
An annuity is a savings vehicle in which you can accumulate money over a period of years by either making an initial deposit and watching the money grow, or by regularly contributing to the funds in the account. When you are ready to start drawing on your annuity, you will receive a series of regular payments.
An IUL is a permanent life insurance policy with a cash savings component. The cash value of the policy can be linked to a financial market index, so you can access the upside of investing in markets while still retaining all the security of life insurance coverage. And when you are ready for retirement, you can use the cash in your policy however you wish.
If the thought of planning for your retirement sounds overwhelming, you can rest assured knowing there are easy ways to get the support you need. One of the easiest ways to get started with savings through annuities and IUL’s is to connect with a Symmetry agent who can help you find a customized life insurance plan that aligns with your budget and retirement goals. Let’s get started – request a quote for life insurance today!