You don’t need to worry about
retirement. Stop
stressing and enjoy your life, already. Work and die; that’s all you
have to do. In fact, we have a secret to tell you: There’s a tiny
retirement fairy who will deposit money into a savings account set aside
just for you. When you’re ready to retire, just send an email to your
employer, and your human resources department will let her know it’s
time to transfer the funds. Ha ha … we’re just messing with you. There’s
no retirement fairy. But if there was a fairy overseeing your
retirement, she would have a few very important things to tell you. Here
are five things the retirement fairy wants you to know.
1. The retirement fairy is not going to help you
Woman saving money by dropping coins into a jar | iStock.com
You have to take responsibility for your retirement. You won’t retire
and then just have a savings account with all the money you need to
stop working and live a comfortable lifestyle. One person who can help
you, however, is a certified financial planner. He or she can assist you
with developing a realistic plan so that you can reach your retirement
goals.
2. You’re running out of time
Clock | iStock.com
You don’t have as much time as you think you have. Start contributing
to a retirement account as soon as you get your first job. You might be
young, single, and carefree now, but before you know it, you’ll be
married with a couple of kids and a mortgage. Start planning now.
3. Your retirement number is most likely wrong
Retirment plan | iStock.com
The amount you think you need to retire comfortably
may not be correct. A TIAA
study
revealed that many retirement savers don’t have a realistic view of how
much money they will need to retire well. It will be important for you
to get as close to your real number as possible so that you can avoid
having to work longer than you anticipated or
returning to work.
If you need help figuring out your number, you can meet with a
certified financial planner. You can also take advantage of one of the
many retirement tools available.
4. Your 401(k) isn’t a piggy bank
Broken piggy bank | iStock.com/wpd911
Start beefing up your emergency savings fund instead of
relying on your 401(k)
to bail you out. Taking a hardship withdrawal should be your last
resort if you’ve fallen on hard times. Know that you won’t be able to
receive a hardship distribution unless your employer offers it. So don’t
bank on your 401(k) funds coming to the rescue.
5. Stop putting your kids first
College student | iStock.com
You love your children and you would do anything for them, including
emptying out your savings account so they can attend a good college.
However, this won’t be a good long-term plan if you ever hope to leave
the workforce. Tell the kids they’ll either have to work a part-time
job, go to a less expensive school, apply for scholarships, or take out
loans. You, on the other hand, don’t have as many options as your
children do, so if you have to make a choice put your retirement ahead
of college financing.
Culled from Money & Career Cheat Sheet:
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