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What steps should you take to prepare for retirement in the next 10 years?
How can you solidify your financial footing?
Keep reading as we help to answer these questions and more.
Also, learn whyspeaking to a financial advisor before you retire is an important step.
So, take the time to think about how you envision spending your retirement days.
Are you planning to explore the world?
Are there any creative passions youd like to pursue?
How much will this cost you?
give a shot to be as specific as possible.
But retirement isnt just about having fun.
You should also factor in your health goals and long-term care.
At the same time, you should start developing your retirement income plan.
Write down all possible sources of income, like Social Security, annuity and all your retirement savings.
Here is aconvenient toolto use for estimating your Social Security benefits.
Its an entirely different experience for your life and money.
Carefully think about the costs you could forgo if necessary.
Money that youll need immediately should be kept in cash.
Funds youll need within a couple of years can be held in bonds.
Money that you wont need soon can be used in stocks.
Pay Down High-Interest Debt
Debt payments can quickly drain your retirement savings.
For this reason, its important to pay off your high-interest debt as quickly as possible.
The sooner youre debt-free, the more income you’re free to allocate to your retirement accounts.
Many employers offer 401(k) plans, which include catch-up contributions.
This means you’re free to stash away an extra $7,500 per year.
For an IRA, you’re able to contribute an additional $1,000 per year.
If you maximize these contributions, youll significantly boost your retirement nest egg.
This means less stress about your financial health.
Surprisingly, some couples arent even on the same page regarding how they want to spend their retirement days.
What will we do in retirement?
What do we want to prioritize?
What is it going to take for us to afford it?
These are all important questions you should discuss together.
The Bottom Line
Ideally, you should plan for retirement when fresh out of college.
Its not the way it always goes.
Still, even if youve struggled to create ahefty retirement fund, its not too late to begin.
Ten years may seem far away, but time moves quickly.
Remember that planning for retirement is a marathon, not a sprint.
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