Will You Have The Money For Retirement?
You know that retirement is more than just a splurge, itâ€™s a new lifestyle. You also know that this new lifestyle will require money. When you hit retirement it will not matter one bit how many travel plans, golf outings, or friends you need to catch up with if you do not have enough money.
Thatâ€™s the easy part to understand. The hard part is how to save enough money to do all of the things you want to do. Making a commitment to your retirement is the only way. No one cares about your retirement as much as you do; if you cannot commit to investing for it no one else will do it for you.
4 Steps To Your Retirement Commitment
Step #1 – The Magic Of A Budget
Budgets have nasty reputations, but if followed correctly they do work. The best way to build a strong financial foundation for your retirement years will be to make trade-offs during your working years.
The first trade-off will be todayâ€™s spending for tomorrowâ€™s savings. If you cannot get your spending under control you will have a difficult time saving money for retirement. The beauty of a budget is that it requires self-discipline. Itâ€™s the best financial tool available to help you curb your spending. Make budgeting a habit and you will have more money to invest in your retirement plans.
Step #2 – Automate It
Having the desire to enter retirement with enough money is one thing; actually pulling it off is another. If you automate your retirement investing that money will not be a temptation for spending.
Investing in a 401k retirement plan is one way to put your retirement investing on auto-pilot. You have to monitor the investment selection and fees of course but the money that comes out of your paycheck into your retirement account can be put on auto-pilot with little harm.
Step #3 – Target Date It
Even though you know you need to make a commitment to saving money for retirement you just do not have the time to figure out what to invest in. Target date funds may be your solution. Target date funds pick diversified investments for you. They start out with funds that are aggressive when you are younger and shift towards conservative funds as you get closer to retirement. Target date funds are calculated to have your stock/bond ratio shift automatically each year.