3 Simple Steps to Retirement Planning

May 21, 2019

[vc_row][vc_column width=”2/3″ el_class=”section section1″][vc_column_text]A pep talk on finances could be useful for Americans right about now. Many folks are really behind on retirement planning, and a good number lack emergency savings. Without having to take extreme risks or sacrifice a whole lot, here are some helpful tips on investing, retirement planning, and saving.

Save That First Dollar – A good number of households have savings that are minimal, and one out of five of these households have zero net worth. The same way a journey of a thousand miles begins with a single step, so does financial planning. That first dollar, save it. George Fraser, a retirement consultant, tells reluctant savers that they can start by putting away as little as one penny and increase that amount by a penny or more every year after that.

This will make the goal of having tens or hundreds of thousands of dollars not seem like such an uphill task. In 401(k) retirement plans style, the tactic works quite well where employees can gradually increase their savings by starting low. Employers have focused on automatically enrolling their employees in 401(k) plans to boost participation in recent years. They then increase the amount the workers contribute over time until the worker decides to pull out, but in most cases, they don’t.

Use Different Periodic Windfalls – consider using raises, bonuses, or special increases if you are not in a position to get any extra cash from regular paychecks. A 72-year-old retired civil engineer Willard Bradshaw said that he made a ritual of taking half of all the pay raises he got and put it into retirement accounts. Bradshaw within a few years was already contributing the maximum yearly amount as allowed by his plan. This was all achieved by him simply putting away half of all his raises diligently.

Set Up an Average Dollar-Cost Plan – if investing for the long haul is your plan. You should invest most if not everything aggressively in stocks, as the move could come with the anxiety of possible risks. A strategy in dollar-cost averaging could be more suitable and appealing. Dollar-cost averaging has different ways to go about it, such as putting a steady amount of your income into the stock market. You can as well move slowly into stocks from bond funds. The best way people can build on small success is to get started and improve your financial results.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”36640″ img_size=”292×285″ style=”vc_box_shadow”][/vc_column][/vc_row]