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The Beginners Guide to Retirement

Blog | January 25th, 2012

Going to work every single day can be rough on your body. You can have a difficult commute; you may get in a fight with your boss or one of many other problems. There is one thing that you look forward to; the day that you can leave work behind and retire. That’s going to be sweet, isn’t it? Well, have you started your preparations yet? Retirement doesn’t just happen; you have to make it happen. We want to help you get on the right foot. We have some tips that you can use to help you retire when you want and have enough money for the rest of your life.

The very first thing you need to do when planning this endeavor is figure out exactly how much money you need. There are a couple of ways to do this. First, you can go online to websites such as Tipster or CNN Money that have retirement calculators. On these sites you can enter your financial information (no specifics) and get an estimate of how much you need to save for your retirement. If you want more specific opinions and advice, find a retirement or financial planner who can put you on the right path.

When you have your number ready and you have gotten any advice you need, start looking into financial plans to see what you can do. Don’t rely on social security to get you through your twilight years. The average payout is only $1,168 a month per retiree, which probably won’t cover all of your expenses. Look to a financial institution to increase your monthly allowance. 401(k) plans and IRAs are the most popular types of savings accounts. These tax-deferred accounts allow your money to gain interest and grow the more years you sit on it. Many employers will also pay into your 401(k) or provide a pension plan if you open it through the company. Check with your workplace to see what they can do for you.

You can do even more to stretch your retirement by taking steps to lower your finances now. Try to pay off as many bills as you can before you decide to retire. That includes your house, your car, your credit card and any other debt you have. If you still have payments, try downsizing. Move to a smaller place or get a cheaper car. You can make the money you have last longer and make any bills you have more manageable.

If you have friends that you want to live with, and don’t have a ton of money to work with, perhaps you can start your own retirement community! Get a couple of friends together and pool your income. You can cover all of your expenses and live with your friends at the same time!

These are just some suggestions that we have for how you can plan your retirement. There are many tactics that people have used to save money and put an end to their working days. If you start planning now, you will be sure to live a happier tomorrow. Share some of the ways you have been planning for retirement in our comments.