When many Americans hear the words, “retirement planning”, they immediately think of silver-haired oldsters plotting life after they are finally able to stop working. This isn’t so unusual since traditionally, it’s been expected that individuals begin planning on an exit from the workforce at about the age of 60 (if they’re lucky)
However, retirement planning isn’t just for seniors. It's actually a bad idea to wait until decades have gone by to plan ahead for how you intend to spend the latter part of your life. Even more encouraging, with careful planning and a bit of frugality, your future retirement may not be as far off as you think
Reasons To Plan Ahead
It’s always a good idea to plan for the future rather than wait and see what happens. We often take for granted how quickly time flies by. Also taken for granted is a hard reality: You never know what events in the world could severely impact your income during the latter part of your life.
Think of the millions of Americans who were blindsided by the recession. A number of homes and jobs were lost and people who had their perfect future retirement all planned are now scrambling for employment.
The most ideal time to begin retirement planning? I would say right this minute. As in, the next step after finishing this article would be to get to work. There is no such thing as too soon to take care of yourself and your significant other.
Rubin: For employees entering retirement plan early history has shown they fare best when they assume risk themselves, invest wisely. #ksleg
— Andy Marso (@andymarso) February 19, 2014
— Modest Money (@ModestMoney) February 12, 2014
Why Not Get Out Of The Workforce Early?
Another reason to get to work immediately on retirement planning is that it’s very possible that you could find yourself retired far ahead of schedule. This is the belief of “early retirement” individuals, those who are planning to no longer have to work by the time they hit their late fifties, forties, or even thirties.
Can you imagine being on a fishing trip at thirty-six because you don’t have to work anymore? It may sound too good to be true, but there are suggestions for how to make this happen. One major bit of advice that is constantly repeated is for persons seeking to retire early to save, save, save, and save some more. If you invest, invest smartly. There are scam artists about looking to make off with your hard earned money while selling you a pipe dream.
It also helps to look into ways to create multiple streams of income.
Whether you are looking to retire in ten years or fifty years, be smart about your money and focused on your retirement goal. Start planning now, doing all the necessary research, and begin saving. The more seriously you approach your retirement planning, the more likely you are to avoid the pitfalls of other individuals.
Image via Wikimedia Commons