You might have been told before that the earlier you start planning for retirement, the better. While this is a commonly repeated nugget of wisdom, the truth is that many people don't know the specifics of retirement planning. Fortunately, authorities on finance like Bob Jain can provide the assistance you need. With the following do's and don'ts in mind, you'll be able to enjoy a comfortable life once you cannot work any longer.
DO save as early as possible. The cardinal rule of retirement planning, according to Robert Jain, is to save for retirement early on. Not everyone can do this in their early 20s, for example, but it's entirely possible to do so once you have a full-time job. This is especially true if your job has a 401(k) or IRA system set up for its employees. When you start saving early on, it can make a considerable difference later down the road.
DON'T forget that your retirement saving can be automated. Yes, you can actually use an automated system to contribute to your retirement plan. There are many plans that allow this, meaning that you won't have to make manual contributions from your paycheck. The system will take care of such matters for you. For those that would like to save time, in terms of retirement or otherwise, this is an important step to take.
DO use your raises to plan for retirement. When you earn a raise, it's often regarded as a testament to your hard work. Why not reward yourself in the long-term sense? You can apply your yearly raises to your retirement plan, which means that you can accumulate more money over the course of time. In short, you'll reach your goal sooner. This is a great tip that more retirement savers, young or old, should take advantage of.
DON'T let retirement be the end of your work. Even though retirement means that you don't have to work full time anymore, this doesn't mean that you should let it be the end of your accomplishments. As a matter of fact, it's in your best interest to set goals for yourself. There are many people that retirement and go on to take up hobbies such as painting or playing guitar. Just because you retire doesn't mean that you can't be productive.
DO save as early as possible. The cardinal rule of retirement planning, according to Robert Jain, is to save for retirement early on. Not everyone can do this in their early 20s, for example, but it's entirely possible to do so once you have a full-time job. This is especially true if your job has a 401(k) or IRA system set up for its employees. When you start saving early on, it can make a considerable difference later down the road.
DON'T forget that your retirement saving can be automated. Yes, you can actually use an automated system to contribute to your retirement plan. There are many plans that allow this, meaning that you won't have to make manual contributions from your paycheck. The system will take care of such matters for you. For those that would like to save time, in terms of retirement or otherwise, this is an important step to take.
DO use your raises to plan for retirement. When you earn a raise, it's often regarded as a testament to your hard work. Why not reward yourself in the long-term sense? You can apply your yearly raises to your retirement plan, which means that you can accumulate more money over the course of time. In short, you'll reach your goal sooner. This is a great tip that more retirement savers, young or old, should take advantage of.
DON'T let retirement be the end of your work. Even though retirement means that you don't have to work full time anymore, this doesn't mean that you should let it be the end of your accomplishments. As a matter of fact, it's in your best interest to set goals for yourself. There are many people that retirement and go on to take up hobbies such as painting or playing guitar. Just because you retire doesn't mean that you can't be productive.
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