Retirement planning is a must. It’s what will allow a flow of income to come in once a person no longer earns a paycheck.
Recent studies have shown that approximately 45 percent of Americans have no retirement savings. This is problematic for a number of reasons on LinkedIn.
Contribute to a 401(k)
According to David Giertz, a broker in Dublin, Ohio, saving for retirement is all about making good decisions. If an employer offers a 401(k), a person should be contributing at least enough to receive the full company match. Essentially, this is free money that a person can earn for their retirement.
Pay Off Debt
Everyone should work with a financial advisor to work on paying off debt. This will ensure that once retirement occurs, no money is going out on past debt.
Wait on Social Security
According to David Giertz, hold off to apply for Social Security until age 66 and two months. It will allow for the full amount and make it easier to have sustainable income.
Start Paying into an IRA
Everyone should pay into an IRA. The average amount is $2,000 a year. Once a person hits 65, that money can then be drawn out monthly to provide additional income for retirement purposes.
Look at Sustainable Housing
Many people waste their money on rent. This poses a problem once retirement begins, warns David Giertz. Those who are retired are on a fixed income. If rent goes up each year, a person’s finances become unstable.
Following the tips, as David Giertz recommends, has the potential to result in a more fruitful retirement.
Learn more about David Giertz: https://www.crunchbase.com/person/david-giertz