Unfortunately, retirement planning is not high on the to-do
list of most young people today. This topic is often considered to be too far
away for talking about early in life and that in my opinion is not true. My
parents were very wise and frugal as they moved through life. They saved and
planned for everything and now that they have retired, they are enjoying the
benefits. I want my story to be similar, possibly with an earlier retirement
age than what my parents had 😉. To
accomplish that, there must be a plan.
After working hard, retirement should be enjoyed. Here are a
few ideas to assist in preparing for that hopefully relaxing phase of life:
1. Invest in
an Annuity or a Savings Plan – This will ensure that there is money coming in
when the plan matures. They can be set for various ages and I like the idea of
having a plan mature about every 5 years starting at 50. (More on this topic in
a later post)
2. Pay off
your mortgage – If you have one now, it is beneficial to not have such an
expense when retired as you will have more need for your funds when you move
from a salary to a pension
3. Eliminate
other debt – Pay off loans for vehicles or personal loans as far as possible
before retirement. The mental freedom alone is worth it especially at that age.
4. Save toward
a vacation – Nothing feels better than knowing that you have worked hard and
can enjoy the fruits of your labour.
These steps may seem simple, but over a lifetime of
preparation the cumulative effects can be amazing and lead to the blissful retirement
you always imagined.
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