Jasz
VIP Contributor
Retirement planning is a process, not a destination. It takes time and effort to develop a comprehensive plan that meets your needs, but it can be done.
Useful tips on retirement planning:
1. Determine your income needs. This might be more than you think, especially if you have health issues or want to start a family.
2. Create an asset allocation plan that includes both stocks and bonds. You can change this after you retire, but it's important to start with something that fits your risk tolerance, so you don't end up in trouble later on.
3. Create an emergency fund and make sure it's adequate for at least six months' worth of living expenses. This can help in case of financial emergencies such as job loss or medical expenses during retirement.
4. Set up a Roth IRA or 401(k) if you're over 50 years old and have earned less than $100,000 in income over your career (not including employer contributions). Contributions are tax-free if certain conditions are met (such as earning under $110,000). The contribution limit for those under 50 is $5,500 for 2018; for those 50-64 years old it's $6,500 per year.
Useful tips on retirement planning:
1. Determine your income needs. This might be more than you think, especially if you have health issues or want to start a family.
2. Create an asset allocation plan that includes both stocks and bonds. You can change this after you retire, but it's important to start with something that fits your risk tolerance, so you don't end up in trouble later on.
3. Create an emergency fund and make sure it's adequate for at least six months' worth of living expenses. This can help in case of financial emergencies such as job loss or medical expenses during retirement.
4. Set up a Roth IRA or 401(k) if you're over 50 years old and have earned less than $100,000 in income over your career (not including employer contributions). Contributions are tax-free if certain conditions are met (such as earning under $110,000). The contribution limit for those under 50 is $5,500 for 2018; for those 50-64 years old it's $6,500 per year.