Planning for your retirement should start as early as possible. But even if you haven’t got around to it yet, there is still time. According to figures, you need around 75% of your final income to have a comfortable retirement. So if you are nowhere near that, you should make a start as soon as possible. Here are seven essential assets that can help you plan for a secure retirement.
Employer’s savings plan
First of all, make use of your employer’s saving plan. Many companies provide their staff with a savings program – and many will match what you put in. That means, effectively, that you will be doubling your money. If you haven’t taken up your employer’s offer yet, then get signed up as soon as possible. Otherwise, you will be missing out on free money for your retirement.
Get a 401(k)
Also, make sure that you make use of your employer’s 401(k) program. It’s a basic pension pot that is supported by many companies and, again, may be topped up to match what you put in. If the business you work for offers you the chance to create a pension pot, you should take it. Again, you might miss out on free money if you don’t. Also, don’t cash out your plans when you move companies. Doing so will cost you money, and you will be much better off bringing what you have saved over with you.
It’s a good idea to pay off any home loan you have before you retire, no matter how many homes you have. Mortgage payments can take up a large chunk of your retirement pot, and owning your home outright will mean you don’t have to worry. If you have other homes – in the buy-to-let market, for example – then your income stream will grow once the mortgage is fully paid.
Look into IRA or Roth IRA plans that suit you. Different banks and brokers will have different charges. So, investigate their IRA custodian fees and interest payments. Go for the one that offers you the very best deal. IRAs and Roth IRAs are seen to be safe investments, as the custodians are responsible by law for looking after your assets.
A diverse portfolio
A broad range of investments in stocks, bonds and currencies is also a great way of supporting you through retirement. Annual dividends can make an excellent boost to your finances for expensive times of the year. For less risk, choose global stocks and bonds, which will protect you from unexpected market crashes in one particular country. A diverse portfolio should also include assets from a broad range of industries, not just a single one.
Finally, make sure you have the right insurance in place. As you get older, you can expect to have medical problems. And, the cost of treatment can be enormous. Similarly, if the worst should happen, you need to be safe in the knowledge that your loved ones are taken care of.
We hope this has helped. As you can see, there are a lot of different options, and even if you are only topping up with small amounts each month, over time your pot will grow. Happy saving!