To be able to enjoy life after retirement, it’s necessary to plan your finances ahead of time. This is where retirement income planning comes in.
This process has two important stages:
- Determining what you want your income to be after you retire
- How you plan to achieve this goal
Getting Started
Planning financially for your retirement can be done individually or through an employer-sponsored plan. If you decide to organize your finances, then you will need to set aside enough money through savings or long-term investments.
To be able to determine what is ‘enough’ money, you should work backward. Think about what your ideal life would be in retirement, what monthly income you would need to achieve that, and create saving goals based on that.
An employer-sponsored plan is a saving plan that includes contributions from your employer. The most famous of these plans is the 401(k) plan, which involves setting aside a portion of your salary each month. It also has the option to allow employers to match your contributions, so if you put aside 3% per month, they will put in 3% as well.
Often, employer-sponsored plans involve investing your retirement savings until you retire, so it’s worth checking into the details of the investment plan.
Secure Your Future
Like any planning for the future, financial planning is best done well in advance.
Retirement income planning needs to be part of your financial picture while you are young and working. And although it can be difficult, simple steps can mean you have a safe and enjoyable retirement.
When you retire, you will have the time to chase passions or luxuriate in peace, so you don’t want to have to stress about money. With the expert advice offered by Vincent Colubiale, you can spend your retirement not worrying about how much money you spent. Instead, you can focus on what matters to you most!