The dream of retirement is attainable! But it requires a good amount of planning. The sooner non-retirees can get to work on their savings, the better. These tips can help give you a better idea of what’s required.
5 Money Management Ideas for Non-Retirees
No matter where you’re at with your retirement forecast, there are a few planning ideas that can help you get and stay ahead of the game. The key is to start early—not when you’re quickly approaching retirement age decades from now.
1. Know the goals for your plan
A good first step is to figure out that magic number. How much money will you need for your retirement plans? Inflation will affect this answer, and you’ll need to have a general description of your intended retirement lifestyle. Attainable, measurable goals will help you pace your savings and stay on-track.
2. Start early to boost success
It’s great if you already have a retirement plan in place. Just remember to schedule regular reviews. And if you haven’t set up a plan already, then now’s the time. Look into your options for an IRA, 401(k), and other plans too.
3. Maximize your employer contributions
You can get a nice leg up when your company has a retirement plan in place. Employers with contribution-matching programs can be a huge asset for your retirement dreams. Take full advantage of that money by making the minimum contribution for the company to match your own investment. You want to make sure you’re really maximizing these benefits!
4. Consider different work scenarios
Retirement doesn’t necessarily mean you aren’t working at all. It just depends on what you want your financial situation to look like. You might have a pension to help cover your needs, or you may be in a position to have your Social Security alone support your lifestyle. Otherwise, being open to part-time work can help fill in those gaps.
5. Take a closer look at the picture
Again, it’s good to dream, but that vision also needs to be well thought-out. If you think you’d like to relocate in retirement, have you already tested out the area? How likely are you to downsize? Would you mind living farther away from friends and family, or is it important to stay close-by? Staying open-minded about that “where” for your retirement will help you confirm that you’re moving in the right direction for your planning. Once you enter retirement, you’ll want that picture to truly make sense long-term.
Looking for Help with Your Strategy?
It’s always a good idea to take a team-approach with your retirement planning. To really have a strategic plan, you need to make sure your financial advisor and CPA have open lines of communication. And if you need to bring another perspective to the table, please feel free to reach out to NSO & Company!
Annual and quarterly tax planning and regular reviews of the tax code allow us to ensure we’re keeping your liability low. We’re always happy to connect with individuals, families, and business owners throughout Central Indiana and beyond. Let us know how we can help!
