Do you want to be a retirement millionaire?

It might not seem like it, but retirement isn’t that far away, and if you aren’t making the right decisions, you could very well find yourself struggling to make ends meet when you’re supposed to be enjoying yourself after all of your hard work.  Lets take a look at the facts- Agora Inc estimates that less than half of American adults have even thought about the amount of money that they’ll need to retire, and about thirty percent of those have access to a defined contribution plan like your average 401K didn’t participate in said plan.

With that in mind, imagine spending at least 20 years of your life with the money that you’ve been saving.  It’s a scary thought, isn’t it?  This is why it’s so vitally important to start saving now, and to start planning for retirement, even though it seems like a long ways away.  Putting money away for financial planning later on in life is something that everyone needs to do because saving defines what you’ll be doing with the rest of your life.

We’ve Compiled the Top 10 Best Ways to Help Teach You How to Save a Million Dollars for Your Retirement.

1. Start Saving Now, And Don’t You Dare Start Dipping in to it.

Saving is and always has been incredibly satisfying and rewarding.  You’ll find that the more you save, the more you’ll want to save, especially if you have a goal, and begin to surpass it.  Take the time to devise your master plan, figure out how much you WANT to have, and start making that goal.  Keep your money separated, keep your bills modest, and you’ll find that saving is easier than you thought.  When you start saving sooner, you give your money time to grow faster than you’ve ever thought possible, so take the time to start now, and don’t start eying it as anything other than it is- your future pension.

2. Figure Out How Much You’ll Need For Your Retirement

It’s hard to figure out how much you’ll need, but a good rule of thumb to remember is that retirement is expensive.  When you haven’t got an income to help you make more money, you’ll realize that it’s difficult to maintain your current standard of living.  Typically you’re going to need about 70- 90 percent of your income pre-retirement to sustain yourself in the future when you’re not working.  Take charge, and figure out exactly how much you spend:

-Bills

-Food

-Fun Stuff to Do

-Emergency Funds

There are a plethora of resources out there to help you get started, like this one at fidelity (https://www.fidelity.com/calculators-tools/retirement/overview?imm_pid=1&immid=01036&imm_eid=e41621289&buf=999999&gclid=CPqD4-O69MQCFcKHaQod0pEA5Q) to help you get started.  Start small, and start looking at the bigger picture today.

3. Start Looking at Your Employer’s Retirement Savings Plans, and Start Investing Now

If your employer has a retirement plan like a 401K, you NEED to sign up and start contributing all you can to make as much as you can.  You can lower your taxes, and your employer will kick in more for you, making deductions easier and easier.  Future compound interest will start making your money grow exponentially.  Like your personal savings, set your plan and stick to it.

4. Figure out Your Employer’s Pension
   

If your employer has a traditional pension plan, start figuring out how to get covered by it, and what your benefit is worth when you get started.  If you change jobs, first figure out what happens to your pension, and learn about your previous employers as well.  Also look into your spouses plan’s benefits.  It’s good to seek out this information as soon as possible.

5. Consider Good Investment Principals

Remember that how you’re saving is just as important as how much you save.  There are a wide variety of factors that play into your total outcome when it’s time to retire:

-Inflation and type of investments

-How your Savings or Pension Plan is Invested

-Your Plan’s Investment Options

-Diversifying and Spreading Out Your Investments

-Reducing Risks and Increasing Returns

-Your Age, Your Future Goals and Financial Circumstances

6. Keep Your Hand Out of the Cookie Jar

You’ve got more to lose than you have to gain by withdrawing from your funds early- including your principal amounts and your interests.  Additionally, you’ll lose tax benefits that you’ve gained by spreading out your income, and you’ll probably have to pay penalties on what you’ve earned.  Even if you’re changing jobs, leave your money invested in your current retirement portfolio, and roll them over to your new plan when you establish a position with a new employer.

7. Tackle Your Debts Now

Start working down any debt you can as fast as you can. Small debts accrue interest, and even bigger debts become huge obstacles. Pay off your car, your house, your college debt and any credit card debts before they bury you in the future- metaphorically and literally.

8. Start Your Own Individual Retirement Fund

Take the leap and put the most into your IRA plan as possible (up to $5,500 a year, contributing more as you get older).  These investments give you tax advantages, and you’ll have options for the future.  IRA’s are easy to use, easy to save, and you can even set it up to automatically deduct from your checking/savings accounts to deposit automatically.

9. Start Working Out Your Future SSI (Social Security Benefits)

You’ll make about 40 percent of what you earned before you retired, so start estimating now.  There’s a great tool on the Social Security Administration’s Website, and you can find it here (http://www.dol.gov/cgi-bin/leave-dol.asp?exiturl=http://www.socialsecurity.gov&exittitle=www.socialsecurity.gov&fedpage=yes)

10. Ask Questions and Make a Plan
    

You’ll wish you took the time to consider this more seriously and asked questions sooner.   Start pinching your pennies and figuring out how you’re going to spend your glory years because they’re closer than you think.  It might not seem like a big deal now, but you’ll either end up spending your last years struggling between bills or soaking up sunshine and fulfilling your bucket list- which would you rather be doing?  Take the time and look into the details- you’ll be glad you did.

We typically do not recommend investment publications however our personal experience allows us in good conscious to direct you to Agora Publishing as a good resource for investment advice.  Also, Agora does a great job of explaining their rational with their investment recommendations.  Legally and ethically Agora Inc. does not invest in their recommendations so as to have no conflict of interest.  As you consider different investment options you should sincerely ask yourself what your risk profile is and act accordingly.

To your everlasting wealth!