Retirement Planning - Tips For Proper Retirement Planning
Author: Jay Royster
Retirement planning the right way is a concern many Americans have but don't have many answers for. Saving as much money as you can while young and investing it as you get older is a good way to create wealth. The key however is to start as early as possible, so your money that is invested can grow over a longer period of time.
401(K) Plan
A 401(k) plan is an excellent retirement planning option because taxes can be deferred and automatically saves money for you. Also, penalties will occur if the money is withdrawn too early, providing great incentive not to spontaneously take money out for any reason.
The key point here is to begin putting away as much money as you can early on so that your wealth will continue to grow from your investments. This is especially important in today's age because our life expectancy is going to continue to increase, so you want as much money as possible available when retirement comes around.
How Much Money Will You Need?
Also, with the uncertainty surrounding health care in America going forward, retirement planning at an early age and correctly becomes even more significant. By the time you retire, you will need to be able to cover any potential medical expenses in addition to everyday living.
One other issue that should be addressed is the amount of money you will need in order to live a comfortable lifestyle during retirement. Calculating an exact amount at a young age that guarantees a comfortable retirement isn't very realistic, but you can reasonably come up with a range financially to meet your goals.About the Author: