When it comes to retirement, we would all like the chance to sit back and enjoy our golden years while taking advantage of the opportunities presented to us by doing all the things that we did not have the time or money to do during our working years. If you wish to achieve peace of mind, it takes careful retirement planning. So, when is the right time to start planning for retirement? At Crash Proof Retirement ®, we know that you can start planning for your retirement at any point in your life. Here are some reasons why we think you are never too young, or too old to start saving money for retirement.
Retirement Planning When You are Young
Whether you are just starting your career, or you have been working for a decade or two, your 20s, 30s, and 40s are the best time to start laying the groundwork for your retirement. If your employer offers a 401(k) plan with matching contributions, taking advantage of those benefits while you are young can help you quickly build up a nest egg that will carry you into your golden years. It is always beneficial to contribute the maximum dollar amount to these retirement plans to help you build your nest egg as you age. You can also take advantage of tax deferred IRAs, principal protecting annuities, and other products that reduce your tax burden today while you save for tomorrow.
Many younger savers are purchasing principal protecting annuities which may help them defer collecting social security payments until they reach their full retirement age. Social security allows retirees to start collecting benefits at age 62, but that is not always ideal because it will result in a reduction of payments for the rest of your life. If you can hold off collecting your social security benefit until you reach the full retirement age of 67, or the maximum age of 70, your payments will be higher than they would be if you collected social security sooner. By purchasing principal protecting multi-year guaranteed annuities you can supplement your income during early retirement years while ensuring that you maximize your social security payments. Having a fully funded annuity can also protect you if you lose your job or become unable to work and are forced into an early retirement by providing you with a guaranteed stream of income.
Retirement Planning after Age 50
If you are like the 15% of Americans who currently have no money saved for retirement, do not worry. Whether you are out of work or do not have access to a retirement savings plan through your employer, there are ways for you to protect what you have. Although the amount you can contribute to retirement accounts like IRAs is limited by law, once you reach age 50 you can make additional “catch-up” contributions to boost your savings. If you own a business or are self-employed, you can also contribute 25% of your net earnings. If you are married, divorced, or your spouse has passed away, you may be able to use some of your spouse’s income or social security benefits to help fund your own retirement. This is also a good time to think about purchasing long-term care insurance which can help you deal with unplanned medical and nursing home expenses that could deplete the nest egg that you worked so hard to accumulate. No matter how you choose to save for retirement, after age 50, the sacrifices you make today will be the foundation of your dream retirement tomorrow.
Reducing Risk after Age 50
There is one more factor you will want to consider when saving for retirement after age 50 — risk. Financial advisors recommend reducing the amount of risk in your retirement portfolio as you get older. If you are just getting started at age 50, you may be tempted to pursue investments that promise the most lucrative returns. This strategy could prove to be lethal for your retirement accounts, because those types of investments are usually based in the securities industry and carry a lot of risk and could result in you losing everything in a stock market crash or economic downturn.
Whether you are a young investor saving for retirement or just getting started after age 50, speaking to a licensed retirement phase expert at Crash Proof Retirement ® can help you get the education that you need to make sound decisions about your financial future. The Exclusive Crash Proof Retirement ® System has already helped over 5,000 consumers get the secure retirement they have always wanted while eliminating unnecessary risk and fees from their portfolios with proprietary, principal protecting Crash Proof Vehicles. If you would like to find out more about how you can start planning for retirement, call Crash Proof Retirement ® at 1-800-722-9728 or visit crashproofretirement.com.