When you are in your 20s and 30s, retirement seems like a far off thing. You have plenty of time to start saving for retirement. When you hit your 40s, it becomes a bit more urgent to begin saving for retirement. If you are lucky, you have been working for a company that has already began a retirement program for you. If you do not have that benefit, you need to start looking at your retirement programs as soon as possible, even as young as 18.
The Social Security Retirement Program
Social Security is the most common avenue for everyone who works. The program was designed to provide up to 40 percent of your wages when you retire. However, every few years, there are problems and one real fact remains, there are more about-to-retire individuals than ever before. This means the point where the incoming funds will not meet the demands of the outgoing funds is fast approaching. To counteract this, the Federal government has been lifting retirement ages. This means some people will have to continue to work until they are 67 before they are eligible to receive Social Security. Thus, you had better come up with your own retirement plan.
IRA, 401K, HSA and other Self-Maintained Retirement Plans:
With tax breaks on income that is deposited into certain retirement plans, it makes sense to max out your contributions each year. Finding the money in this economy can make it a challenge. If you receive any bonus money, unexpected windfalls, or even manage to cut expenditure, consider paying yourself in the future and deposit these funds into your individual retirement account.
Real Estate Investments:
Personally, real estate is my choice for my retirement. Buying real estate is a great way to prepare for your retirement if you look at all of the details closely. Buy a U-Store-it, a mobile home or RV Park, or any other type of real estate that will provide you with a long term income. Plan your investment so that you will have to put in the minimum amount of your time and energy. Be sure that it is a large enough investment that it will pay someone to handle the work while you collect your proceeds from the real estate.
Build Up Residual Incomes:
Another method to plan for your retirement is to build up items that will bring you residual income over the years. Writers may receive an upfront payment for a novel, but they will also receive residuals book sales over a number of years. If you have a talent that you can market for future residuals, be sure to take advantage of it as young as you can.
Retirement does not have to be scrimp-to-get-by time. You can do something now, no matter what your age, to prepare for a comfortable retirement. Take a look at your current assets, your job, and your future plans and build yourself a roadmap to get where you want to be. Always depend on yourself for your comfortable retirement. If you look to others to take care of you, you may end up disappointed with the results.