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Retirement Planning- Tips to Prepare for Retirement

If you are a working adult, you must be stressed just like the majority of us. Your office life is probably consuming most of the time which has resulted that you are no longer in the state of fulfilling the promise of dining out to your wife that you made in the morning. We have […]

Retirement Planning- Tips to prepare for retirement
Retirement Planning- Tips to prepare for retirement

If you are a working adult, you must be stressed just like the majority of us. Your office life is probably consuming most of the time which has resulted that you are no longer in the state of fulfilling the promise of dining out to your wife that you made in the morning. We have entirely invested ourselves in our careers, and yet the average American citizen still struggles to make savings at the end of the month with the monthly mortgage payments and some of us are still paying our student loans despite being in our 30s. Now that majority of you agree with what I have said in the above lines, how many of you have actually thought of your life after retirement and what have you done so far about it. some of the best retirement plannings are lifestyle retirement villages.

Everyone is aware that they will not be employed forever as more than half of the working Americans expect to work until they are 65 years old. Considering this, it is astonishing that according to a survey, three out of four Americans had a saving under twenty-five thousand. According to economists, future retirees need to save more money, work longer compared to the retirees of today. The following tips will help you if you do not have a retirement plan yet.

1. Start Saving:

You should make an effort to decrease your expenses so that you can save more. The younger you are, the higher the value of your savings will be when the time for retirement comes. Consider that two colleagues Mr. X and Mr. Y, contribute two hundred dollars per month to their company and earn a five percent rate. The difference is that Mr. X started investing when he was twenty-five years old until he was forty-five. Mr. Y began investing when he was forty-five years old until his retirement. When both of them retired at the age of sixty-five, Mr. X had a balance of $225,307 while Mr. Y had $83,092. The difference is due to the power of time.

2. Use Tax Laws to your Advantage:

Compared to the 1980s, taxes are now lower for the average citizen in the USA. Even though there are various types of taxes implemented in the USA, there are laws that provide the opportunity for citizens to decrease their tax liability. Such exemptions legally assist you to save funds for your retirement planning. There are tax-deferred plans available which exempt you from paying a particular type of tax after you cross the age of fifty. Although the fees for building a retirement portfolio is expensive, you can use the benefit of tax exemption to fund them to the fullest.

3. Make Investments:

Investing in stocks, real estate, or even gold can help to increase your money which you will require when you retire. Different investments require different levels of risk from the owner. Since the prices fluctuate due to market speculation, investment generally provides a higher return compared to savings. Since the aim of retirement funds is to provide future income, they invest in assets and diversify their portfolio. It leads to a decrease in risk since what you lose in one stock can be gained in another. When you are young, you can afford to take risks to increase your return, but that is not encouraged near the retirement age when you should go for a steady income.

4. Avoid wasting money:

In the world of globalization, it is easy to lose oneself to the charm of marketers and advertisement and buy additional products that you regret later. Emotional manipulation and the availability of easy credit has driven a consumer behavior within the population and has resulted in citizens like us chained by debts worth thousands of dollars. You don’t need to buy the latest model of car, mobile phones and go on vacation every year. Cutting such costs can save you thousands of dollars which can go to your retirement funds.  Remember that you do not need to be cheap and stingy to save money, but certain precautions taken over a while may help you to save money which will benefit you in the long run.

5. Prioritize your Health:

Although the government funds the majority of the medical expenses, it does not pay for everything if a person is over sixty-five years old. There are individual premiums along with deductibles that you need to pay for the price of medical expenses as they increase. There is a debate about whether the elderly should be asked to spend more money for their medical expenses.

The irony is that the majority of the problems that the elderly face is due to the poor lifestyle that they chose when they were young, although the issues do not appear until later on. Smoking, alcohol, and obesity all have adverse effects on your health which will force you to face the consequences later on. If you eat healthy and workout regularly, you significantly decrease your chances of sickness and avail the opportunity of a better quality of life in your old age. You do not need to make significant changes to be healthy but gradually such choices will reward you in the long run when you no longer need to worry about medical bills at the later stage of time since you always cared about your health.


If you want to adapt to all the tips mentioned above, it doesn’t ask you to make significant lifestyle changes, and all of the tips are still achievable if a person stays focused on them. With proper preparation, there is no excuse why retirement cannot be what you dreamt about, but you have to take responsibility early on in your life, and you should be cautious and use common sense when it comes to your shopping and eating habits. You can make suitable investments to increase your returns, but at the same time, there is no need to be greedy and take additional risks when the retirement time comes.