Everyone dreams of a life post-work. Days full of nothing but spending time with loved ones, traveling, and enjoying hobbies. Unfortunately, those luxuries often have to be earned. In order to enjoy retirement, you have to plan and make sound investments. Read on to learn how Insurance Lounge could help you set yourself up financially, so you can enjoy all the perks of retired life.
When you first begin working, or even after you’ve been in the workforce for 20 years, retirement can seem more like a faraway fantasy than a reality. Because retirement can seem so distant, many people fail to plan far enough ahead to ensure they can retire comfortably. The reality is that proper planning takes years of dedication, making it vital to start sooner rather than later. Retirement planning can help you avoid relying on government-sponsored retirement and allow you to pay for unforeseen medical expenses. The benefits from government-provided Social Security are meant to provide a basic safety net once you reach a certain age. But that minimum standard is often not enough for most individuals to have a fruitful and enjoyable retirement. Reasons why you shouldn’t rely on government-sponsored retirement:
If possible, you should start planning for retirement as soon as you start working. Remember, slow and steady is the name of the game when it comes to saving for retirement. With that being said, it’s understandable that planning for retirement in your early 20s is easier said than done. However, because of the nature of compound interest, there is a huge difference in the value of your retirement savings when starting in your 20s instead of your 30s. Starting early will also give your more time to save and acquire other assets that can help make your retired years as comfortable as possible. The Average Retirement Age Data from the U.S. Census Bureau indicates that the average retirement age in the United States is 63 and that the average length of retirement is 18 years. So theoretically, you should be planning to have around 20 years’ worth of income ready when it’s time to retire. Here are some tips to help ensure you can build adequate retirement savings that will last you for the long haul:
When thinking about retirement, it’s crucial to think about how you want to spend your years after leaving the workforce. Things like where you will live and how you will spend your free time are important to consider because depending on how you invest and save, some homes and activities may be unattainable if you don’t plan accordingly. It would be best to research which investment options will work best for your needs and yield the best return. As you likely already know, there is a certain amount of risk that comes with investing. One way to mitigate some of this risk is by having a diverse portfolio of investments. Our advisors can counsel you on the following areas:
If you start investing young, you have time on your side, giving you time to recover from investment losses. While if you wait to start investing when you get older, it might be a better idea to opt for lower-risk investments. No matter your age, it’s never a bad time to start investing if you have the ability. With all the investment options available, you can likely find something that will work for you.
Unless you work in finance, it’s unlikely you are up to date with all the new best investment practices and trends. The experienced professionals at Insurance Lounge can help you reach your investment and retirement goals. From 401(k) planning to saving for your children’s college funds, our licensed experts can help you prepare for the future. Fill out our quote and buy form or stop by one of our four storefronts in Oregon to be provided with recommendations based on your situation and speak with a live Insurance Concierge today.