A person should prepare for retirement. Preparing for retirement requires planning. While most people may automatically think of financially being prepared, this is only one aspect. Getting your legal documents and other wishes in order ensures everyone can meet your wishes.
How can you financially be prepared for retirement?
Social Security, if a person qualifies, is one way of having an income during retirement, but more is needed for a person to live off of. Therefore, contributing to a retirement account or qualifying for one can help with future expenses. Here are a few retirement accounts to look into:
- 401K
- Roth IRA
- Simple IRA
- SEP IRA
- Traditional IRA
- Self-Directed IRA
- Solo 401K
Another option to consider is a pension plan. Specific companies or government jobs provide a pension when an employee retires. See if your employer offers a pension and what the qualifications are.
Finally, consider basic investment principles to help build up some assets. One option is to put money into a high-yield savings account. Another option is investing in CDs. Depending on a person’s comfort with the Stock Market, you might want to look into investing in stocks, mutual funds, or bonds. If you are not savvy, work with a financial advisor.
How else should I prepare for retirement?
Getting your Will, Trust, Power of Attorney, and Medical Power of Attorney documents into place is best. You should review your legal documents every two to three years and make any changes depending on your current life situation. There are generic forms available online or in an office supply store. Ultimately, it would be best to consult an estate planning attorney specializing in this field and advise your options, but you can use the other options if you have limited funds.
Is there anything else I should plan for?
It would be best if you made your end-of-life plans. Most people may not realize that you can preplan your cremation or burial. In the long run, it would be cheaper to preplan your affairs since costs go up annually. If you do this, please inform your family and friends and have the paperwork with your legal documents, such as a Will.
Planning for retirement while healthy and of sound mind can help mitigate future problems. STAGES is a resource for people as they age.