Retirement years are a phase of life that most people look forward to and prepare for. However, to avoid any inconvenience or an uncomfortable situation, it is a great idea to plan for it ahead of time. Retirement planning is an easy feat to achieve if you know how to go about it. It is also a multi-step process that you need to keep revising over time.
If you are looking forward to having a fun and secure retirement, you need to have enough money saved. The one thing that affects your retirement the most is having a great and workable retirement plan. A retirement plan will help you see what your saving goals are. It will also help you figure out how you want to achieve those goals.
We will be discussing five easy steps for you to create a good retirement plan William Schantz describes!
Steps to Create a Great Retirement Plan by Schantz
Step#1: Figure Out How Much Money You Will Need
Having your retirement goals in mind is important for creating a retirement plan. Take a moment to see what you want your retirement years to look like, says William Schantz. For instance:
Do you have plans to travel?
Do you want to keep your family home or downsize?
Would you prefer to live with your kids/grandkids?
Do you want to further invest your retirement savings?
Do you have any hobbies that you want to pursue?
All these things have a great influence on what people need to save for their retirement years. So, you need to make sure that you have a clear idea of the estimated amount of funds that you will be needing.
Step#2: Keep your Current Finances in Mind
Once you decide how much money you will need in the future, it is time to see how much you have right now. When you start off with your retirement plan, keep your current financial situation in mind. This will help you see how much money to take out of your monthly income each month for your retirement savings.
Schantz says that people need to be as realistic as possible when it comes to assessing their financial situation. Your current financial standing and your progress in your career will decide what kind of retirement plan you need.
Step#3: Save the Money and Invest It Further
When you start saving money, make sure that it is invested further. The more you invest, the more you will be able to save for your retirement years. Investing the money you save is a great way to increase its value without having to strain your budget.
Step#4: When Short of Money, Make Up for It
It is normal for people to fall short of their saving goals from time to time. However, you need to always find a way around it and see how you can make up for that money. One of the best ways to do this is to save some extra money in the upcoming months and add them to the retirement fund.
Step#5: Plan for the Unforeseen Emergencies
You need to make sure that you have planned for any unexpected emergency that might come up. It can be anything from a healthcare concern to the loss of a job, etc. Having a plan for such unexpected situations is the best way to avoid stress and keep up with your retirement plan.
Concluding Remarks by Schantz
Having a solid retirement plan in place is essential for people who want to have secure and fun retirement years. Following these five steps by William Schantzwill help you come up with a retirement plan that works best for you. All you have to do is keep your finances in check, know how much you need to save, and invest the money whenever you can. Good luck!