Setting Retirement Goals
Planning for Retirement
As you prepare for retirement, keep these tips in mind:
- Develop some financial goals and create a plan to achieve them.
- Be prudent and watch out for people who are out to get your money. Be leery of financial offers that promise anything free - or with very 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 with 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 credit card reduces the amount that you can save for retirement.
- Seek employers with strong retirement plans - 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.