Steve Pybrum is the author of the best-selling finance book “Money and Marriage-Making It Work Together.” In this book, he teaches couples how to work with each other, rather than against each other.
Young married couples may think of retirement as a far-off matter that they don’t have to worry about any time soon. However, the sooner they begin to plan for it, the better their senior years will be. In fact, sound retirement planning has the potential to shave off a few years of your working life. If you like the idea of retiring in your 40s, for example, then read on to learn a few tips on how to get started with retirement planning:
1. Start today – This can never be emphasized enough: start today. If you don’t have an emergency fund yet, work towards building that first. Ideally, you should have about at least half a year’s expenses set aside for your emergency funds. Once you have that, you can then move on to putting your money in different investment vehicles like stocks and bonds.
2. Your age will dictate your investment strategy – You shouldn’t rely on Social Security in your senior years. Unfortunately, it will not be enough to cover all of your expenses. If you’re in your 20s or 30s, you have the luxury to be aggressive with your investments and invest heavily in stocks. As you get older, say, in your 50s, your goal would shift to preserving money from growing and accumulating it. At this point, bonds would be a better choice for you and your spouse.
3. Plan realistic estimates – No one knows better how much you need for retirement than yourself. Rather than going with a ballpark figure, start jotting down your expenses today which will give you a more detailed and realistic view of your needs. Don’t forget to account for inflation and other unexpected costs like healthcare.
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