Your grandparents and parents will keep on advising you to plan your retirement even though you are in your 30s. It might seem a little too early, but they are right you know. As you start planning early, you will reach your goals early, too.
Just look at the life of Warren Buffett. He started investing at the age of 11 and it’s pretty evident that he is among the top 10 richest men. Planning early may not make you as rich as Buffett but it will surely make your life easier as you retire.
Here are some tips to have to plan for your retirement in advance:
- Save money on taxation
Taxation reduces your income but if you invest your income, it lowers your tax burden. It also helps you save more money for the future. As you invest your money in a tax-deductible scheme, it won’t just reduce your tax amount, but help you organize your life after retirement in a better way.
- Make aggressive investments
Why not take risks when you can in your early age? Since you have limited financial obligations, for now, you can invest in more aggressive schemes that tend to offer bigger rewards. If you are in your 25s, go for mid and small cap mutual funds. But as you age, change your strategy and invest in large caps and debt funds. Their return will be lower, of course, but they are safer.
- Start doing research for long-term care
You may already have health insurance which is great but since life is unpredictable, you must also consider your long-term care. Why not start doing research for your Humana 2019 Medicare advantage plan. Although policies tend to change, if you have a thorough understanding of this plan, you will make fewer mistakes. Why not help your parents find the right plan so that you can know the ins and outs of it before your time comes.
- With proper planning, you can retire early
Let’s say you are done with your financial liabilities and you have enough savings for the rest of your life. This means you could retire early. Who wouldn’t want that?
Don’t procrastinate and don’t put the idea of retirement behind just because you have time. Once you get married and have kids, your financial obligations will increase. For a better and peaceful life, plan ahead of time. You won’t regret it!