A financially secure retirement starts with making a plan today. You may not want to work forever or be able to rely fully on Social Security, so thinking ahead has its benefits. Here are seven things you can do to prepare now for retirement that may help the transition go smoothly when it’s time to enjoy the life you’ve earned.
1.) Make Retirement Goals – Having a plan and saving with intention is the first and arguably most foundational step in your retirement journey.
2.) Save 15% – If you haven’t started saving, now is the time to start! Most investors recommend saving between 10% to 15% for retirement. Start with contributing through your employer, since they often match contributions.
3.) Plan for Inflation – It’s a fact of life. When planning for retirement, just assume prices will rise – and be prepared for it.
4.) Utilize an HSA – An HSA (Health Savings Account) can help you accumulate savings with special tax advantages. While Medicare covers basic health coverage, most retirees still have out of pocket medical expenses that can become expensive quickly.
5.) Build an Emergency Fund – Put some money aside in your TBK Bank Savings Account – it decreases the risk of having to withdrawal from your retirement funds and disrupt long-term goals.
6.) Diversify Savings Accounts – Certificates of Deposits are a great, safe way to grow your cash. It’s best to do this with long-term tax-deferred CDs.
7.) Get a Financial Planner – Preparing for retirement can yield both emotional and financial returns and working with an experienced financial professional can ensure you’re addressing both. Talk to us at TBK Bank today!