How to Make Better Retirement Plans - Dave's Wallet

How to Make Better Retirement Plans


If you’re currently in your 20s, the last thing that you might be thinking about is retirement. But if you’re twice that age bracket, it might already be too late. You need to make plans for your retirement to avoid becoming a grumpy grandpa, or grandma.

Here are some of the ways you can secure an enjoyable retirement for yourself.

1. Start Early

You should start saving and investing your money as early as you can. Create a retirement plan that would be funded consecutively. You can start small, and increase it as you go on. The more investment you make when you’re young, the better your shot at an enjoyable retirement.

2. Open an IRA

Creating an Individual Retirement Account (IRA) is a great way to plan your retirement. You can either opt for the Traditional IRA or the Roth IRA plan. You check out which IRA is best suited for you.

3. Automated Retirement Savings

Create a retirement savings plan and automate it. This way you’d grow your retirement funds without thinking too much about it.

4. Save up extra funds

Do you have extra cash? Well, save it! Most people blow off extra cash because it’s ‘extra’. Invest it in your retirement plan.

Image courtesy of sixtyandme.com

5. Set a target

Saving is effective when there is a target in view. Having an idea of how much you would need for your retirement makes your saving and investment process much easier. This would help you keep track of your money; at what age you can retire and how much you need to achieve it.

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