Wednesday, April 1, 2009

Planning for Retirement

By: Allison Franklin

Saving for retirement can be a difficult task that many people put off because of how hard it is. However, this is a time that everyone has to plan for because if they do not, they will not be able to live out their lives in financial comfort. There are a few steps that can be taken to help people save and plan for retirement. The first is to start saving young. The earlier you start saving the better off you will be. This may sound simple, but the truth is it is not. Most young people believe that they do not need to worry about saving for retirement as they have so much time. The truth is it comes faster than you think and preparing early is a big help. The second thing to do is to try and calculate how much money you will need. This estimate can be made by taking an estimate of your expenses and multiplying by how long you expect to live. Obviously this is not totally accurate, but it will give you a ballpark when it comes to an amount you need in your savings. The third thing to do is start saving. You need to look at your current income and expenses and see how much you can comfortably save. You need to make sure you put this money into your savings every month as if you skip months it can throw off your entire financial plan. With these steps it can make retirement planning much easier. Retirement planning is a difficult process, but if people put effort into it, it can be made easier.


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