Retirement planning is one of those things that isn’t taught in school. You kind of fumble along until you take the time to learn what you need to do. Saving for retirement isn’t easy. It takes a dent out of your day-to-day finances, but it’s worth the effort, especially if you’re looking to retire around the average age of 65. Here are some tips and tricks for retirement planning in Central Oregon.
What is Retirement Planning?
Retirement planning is setting retirement goals and creating an action plan to achieve those goals financially before you retire. Part of the overall financial strategy behind retirement planning is to make sure you understand how much money you need to comfortably retire without worrying about paying your bills, having healthcare, and emergencies that pop up. Retirement planning is fluid and is dependent on your current financial situation and changes as your life moves forward. Adjusting as your plan for retirement is the key to your success.
Tips for Retirement Planning in Central Oregon
Understand Your Timeline
No matter when you start saving for retirement, you have to gauge when you really could stop working and survive on what you’ve saved up to that point. Once you understand and accept that timeline, you’ll be able to start planning what you need to save each month from getting there. As things happen, you’ll be able to adjust what and how to save as you switch jobs, come into windfalls, work extra jobs to save more money, and more.
Figure Out Your (Future) Expenses
One of the most significant steps to retirement planning is understanding your future expenses. What you spend now may change in the future; it may go up or down. Ideally, it goes down as you pay off your home in Central Oregon, pay off your car, and get rid of debt. When it comes to moving and retiring in Central Oregon, you’ll want to plan for expenses in the local area and plan for inflation. That’s where the next step comes into play.
Consult a Financial Planner
Consulting a financial planner and checking in once or twice a year after initially meeting is the key to adjusting your retirement goals. As things come up, a financial planner will help you maximize your savings and ensure you’re investing where you should be vs. just throwing money blindly into a savings account and hoping for the best. A financial planner will also help you project what you need to save for the future and how to get there adjusting along the way for life’s curveballs.
Maximize Your Retirement Investments
When working with a financial planner, they’ll be able to guide you on the best way to maximize your investments. Simply “saving” money in a savings account isn’t going to cut it. Investing your retirement savings on the stock market, real estate, and other areas will help you get a return on that investment that can double, triple, or more than what you initially are putting away for retirement. This will be where the magic happens with retirement planning – by earning interest on what you’re saving. You’re going to play catch up if you’re behind and have more than you planned for when the time comes to retire by investing wisely.
Plan to Save Towards Those Expenses
Once you know what to save and how to do it, it’s time to start saving. Commit to saving x amount of dollars per month and adjust as needed as things come up. For example, consider changing how you’re contributing to your 401k or other investment accounts if you get a raise. If you get a holiday bonus or some other windfall, consider how investing that vs. spending it immediately would benefit and make retiring easier. Set saving goals, and stick to them every month.
Use Win Falls to Get Ahead
Any opportunity to earn more money or if you come into money is an easy way to build up your retirement savings, often with little effort. While you may need to make big purchases with windfalls, make sure to spend time figuring out if they’re necessary and whether investing in your retirement is a more prudent course of action in those moments. Being able to make that decision will help make retiring easier and quicker.
Adjust as Needed
Things never go according to plan – no matter how much you plan. Keep that in mind and accept life as it comes at you. You may not always be able to save as much as you planned. Maybe you’ll lose a job or move on to a new one. All these moments are great for adjusting what you’re doing and continuing to save, even if you have to reduce your monthly savings goals. You can always find a way to keep saving, no matter how small your contributions.
Don’t Let Setbacks Derail Your Retirement Plan
Life does happen, which is why adjusting as needed is something you need to accept and deal with. Don’t wait when a setback takes place – it’s the perfect opportunity to meet with your financial planner and ensure you’re adjusting whatever set you back to begin with. These adjustments are the ideal time to remind you that as long as you’re working towards your retirement plan, that’s what matters. You’ll get there. You may need to change up what you’re doing to live comfortably now so you can live comfortably in the future.
New Era Homes Will Build You the Custom Home You Retire In
New Era Homes understands that retirement planning includes the home you’ll spend the rest of your life in – let us build that home in Central Oregon. Contact us today to find out how to invest in your future with a custom home now. By beginning to work towards paying off your mortgage sooner rather than later, that will be one less bill to worry about when you retire. We’d love to help you make Central Oregon your home.