How Setting Up Your Retirement Now Will Save You Later
Retirement is one of life’s little nuances which we will all deal with at some point. There really is no way to escape it through conventional means. Granted there are many ways to change the outcomes to avoid hitting retirement head on, but most of us will end up at the standard retirement age and live off of our savings and investments for the rest of our lives.
The question I would pose to all of you is, “How does the idea of retirement make you feel?” Leaving it open-ended, truly think about your thoughts and feelings. For some of you, it is dread, fear, and anxiety. Others may be feeling nonchalant about the whole idea. Lastly, some may feel anticipation or excitement for retirement. Regardless of where you are, think about the root cause of your feelings. Now, what should you be feeling?
If you are in the younger generations, you are probably not as concerned with your retirement. You feel as though you have plenty of life to live, and there shouldn’t be anything wrong with starting to save when you are in your 30’s. However, the older we get there is a tendency to hit a realization that we need to save for retirement. So what do we do then? Is it too late? The answer – No. Check out the short video below by Daniel Goldstein. He explains our feelings and thoughts towards retirement, as well as clarifies how we can manage them.
Where to begin – Retirement Planning.
I am sure you are having mixed feelings about the video, as I know I did. However, Daniel has provided an excellent visual representation of what we will all deal with. Yes, saving money now will create some discomfort. However, it will only be for a short period of time. Plus, the payoff, in the end, will be well worth the initial investment in yourself. So, how do you begin? Well, you are going to want to start by examining your current financial situation and your budget. This step will go beyond what your income and expenses are every month. This is going to include any and all outstanding retirement, 401K, and pension accounts. Make sure you have the amounts contributed every month (or percentages), the rate of return, your current expense per month (assuming nothing changes), and your desired age you wish to retire at.
Next, check the following link: https://www.nerdwallet.com/investing/retirement-calculator
From there, you will have the ability to input all of your information and adjust as needed. The calculator is very simplistic for ease of use. However, you can click on some of the other links to better understand where you are with regards to retirement planning. After getting your results, I would strongly suggest meeting with a retirement planner. If you cannot afford one, youtube is a great resource. Another place to check would be through your church or local community. These licensed individuals can create a standardized plan for you to follow, to ensure you meet your retirement goals!
Remember, it is better to be unhappy while you are still making money, instead of being too old to work and having no money.