Workers of all ages can benefit from sound retirement planning. The sooner you get started, the more you can allow time - and interest - to work on your behalf. While everyone's retirement goals are unique, the following general tips can get you started on the path to a retirement free from nagging concerns over money and the future.
Maximize Retirement Contributions
Are you contributing all you can to your 401(k)? Contributing the maximum amount, or at least enough to receive the full employer match, can help you unlock the full potential of this retirement plan. Even a small contribution made early in your career can multiply many times over, after accruing interest, by the time you retire. Other plans, such as an IRA, SEP IRA or Solo IRA can help you save even more.
Manage Beneficiary Designations
A key element of retirement planning that often gets ignored is updating beneficiary designations for insurance and retirement accounts. Missing or ambiguous information can cause delays, legal fees and other problems for those you want to help. Common errors concerning beneficiary designations include:
- Forgetting to name a beneficiary
- Failing to update beneficiaries after a birth, death or divorce
- Failing to implement a contingency plan in the event of the death of a beneficiary
Taking a few simple steps today can help ensure that your plan will produce the results you intend it to.
Are you unlocking the full potential of your investment portfolio? A key step in retirement planning is making sure your investments have low expense ratios and that they are rebalanced so that you maintain your desired level of asset allocation.
Taxes are inevitable, but some can be avoided with skilled legal and financial planning. By working with your accountant and/or estate planning attorney, you can make sure you and your beneficiaries are not being saddled with unnecessary state and federal taxes.
Achieve The Peace Of Mind You Deserve
With planning and foresight, you can put yourself in the best possible position for a financially comfortable retirement. It is always wise to consult with an experienced estate planning attorney about implementing retirement plans that support your specific financial and legal goals.