Setting retirement goals
Planning for retirement
As you prepare for retirement, keep these tips in mind.
- Develop financial goals, and create a plan to achieve them.
- Be prudent, and watch out for people who are out to get your money. Be skeptical about financial offers that promise anything free or with little effort.
- Recognize that, as an investor, you will face risk. Diversify your assets to best protect yourself against risk.
- Before paying bills and other obligations, try to set aside money each month in accounts for your long-range goals and emergencies. In other words, budget for savings.
- Consider boosting your income with a better-paying job or a second job. This will allow you to put away more money for retirement.
- Build your retirement funds by scaling down your lifestyle and living on less. The sacrifices you make now will affect the quality of your life later.
- Pay off credit card debt. The interest you pay on a credit card reduces the amount you can save for retirement.
- Seek employers with strong retirement plans that are either traditional monthly retirement benefits or 401(K) plans. Some companies offer employee stock option plans. You'll learn more about 401(K) plans later in this course.