3 of 28

Write now Article Tools

We all envision retirement as the years of rest, because we have worked hard all our lives. If we want to make all those dreams come true during retirement, we need to start planning now because that trip around the world is not going to pay for itself. According to the U.S. Department of Labor, only around 42% of Americans have calculated the actual costs of retirement and on average Americans will spend 18 years in retirement. So if you are one of those Americans, or in similar circumstances to those quoted, it is necessary to really focus on your future because, with a little research, you can take charge of your future.

1. Plot for the future

No matter what the information required to making a decision, it is always best to research material. So, the topic is your retirement years and how you plan to afford your dreams. There are plenty of financial books on ways to save for the future. And after reading these types of books you retrain your brain to plot life's goals. Two popular financial advisors turned authors who focus on retirement planning are Dave Ramsey and Suze Orman. Depending on your style one may be more appealing than the other, but both offer the same types of advice and show you how it is possible to save money today.

2. Pay yourself

You pay your bills every month, so why don't you pay yourself? It is a simple little trick that may take some time getting used to, but once committed to the plan your future becomes an important bill that needs to be paid. Even if you have a 401k, IRA, Roth IRA, Money market account, or other types of investment you need to create this little thing called the Emergency fund.

Emergency funds should be able to cover six to three months worth of your expenses in case you are unable to work. And even though that may sound undoable if you have the know-how you can do it. The best way to create this fund is to automatically set up a specific amount to transfer into a savings account. Most money experts suggest that ten percent of your monthly income should be socked away into a savings account.

Join your company's retirement plan. More and more companies are offering this because most traditional pension plans no longer exist. And the good thing about this is it is automatically deducted from your pay before tax deductions, you cannot touch it without paying a high price, and they roll over in case you ever leave your current job.

3. Forget about it

Most people who want to save find it difficult because they want to see

• 1
• 2
• next page >>

Add your voice

Know something about Retirement: How to prepare?
We want to hear your view. Write now!