Learn about Retirement Planning
Prepare Ahead Of Time For Retirement Income
If you are currently working, or preparing to enter the workplace, chances are you are looking forward to the income that position will provide immediately. Thought of saving for retirement or looking at retirement planning tools are might seem premature at this time. If you look at a retirement calculator though, you will find that saving for retirement early in your career is the key to meeting or exceeding what many retirement planning calculators can predict for your income when you do retire. Relying on Social Security alone is risky as even today it only accounts for 39% of income for most retirees.
If you are married, it's even more important to look at retirement planning tools such as a couples retirement calculator. This will help you determine which retirement tools are best and if you should invest using both incomes. Having a game plan is the key for a successful retirement and that couples retirement calculator will get you on the right path.
A retirement calculator will determine based on interest rates, expected inflation and other factors how much money you can plan on having when you retire. Using a retirement planning calculator is not your only option though. Meeting with a professional in the industry will provide additional information. He will likely use tools such as a couples retirement calculator or retirement planning calculator in his retirement planning tools with you, but introduce you to the different ways to save as well.
If you are lucky, you might work for an employer that offers a pension. A pension is a fund that an employer contributes to without you having to invest your money. You can then access that money based on qualifications such as the length of time you worked for the company, your age, and the amount that is in the pension. These are not very common today, and are more frequently found with government positions.
Other options for saving for retirement include defined contribution plans and individual retirement accounts. In both, part of your paycheck is invested in an account to mature when you retire and reach a specified ago. In defined contribution plans, frequently an employer will match a portion of what you invest up to a specified percentage of your pay. Individual retirement accounts typically are not matched, but allow you to invest wisely based on calculations from a retirement calculator.
Other options your retirement professional may present to you depend on your financial situation. You can invest in guaranteed income annuities that pay you a certain amount of money each year based on your investment. Another option is to sign up for a life insurance plan that allows you to borrow against its value. Yet another option available if you have the income to do it is to invest in real estate. You can purchase it yourself, or as a member of a group of purchasers. Meeting with a retirement planning executive will allow you to choose the best option for your future.