It is no longer enough to rely on any government or company compensation for your retirement. Financial advisers actively encourage preparing for retirement early.
Earn, Save, Invest
Whether through your day job, business, or part-time jobs, you cannot invest without money. Some financial experts say you can invest in real estate with no down payment, doing so is risky if you don’t have cash reserves. Investing is a plan; not planning and lack of experience is akin to gambling your wealth.
Pay Yourself First
Set aside 10% to 30% of your gross income and put it in an emergency savings account. You need to accumulate 3-6 months of your expenses. That way if you are unexpectedly downsized, you have enough to support yourself until you get another job. Once you’ve reached that amount, open an investment account. Whatever you put in there will only go to your investments and nowhere else.
Find an Investment
While you’re building up your investment funds study your options. Only when you have a good understanding of all the benefits and risks should you start investing. Put a little money in first, knowing that there is a chance you can lose this money. Once you’re comfortable with it, keep investing and reinvesting your funds. Don’t let a single cent leave your investment account, so when you’re ready to retire you’ll have something to dip into.
After You’re Gone
Most of your estate will go to probate taxes and fees unless you plan what to do with it now. Look into estate planning with every major change in your life like marriage, having children, or moving to a new city or state. Laws vary in each area and a move from Utah to Colorado can make a big difference to your estate plans. Wherever you end up living long term, check in with the local estate planning lawyers in Colorado to ensure your will is perfectly legal and up-to-date.
Don’t Sweat It
Planning early can be stressful. But if you plan now, you won’t be spending the months prior to retirement wondering “What will I do now?” Instead, you can look forward to enjoying life and your new adventure.