3 Tricks To Help You Stay On Track For Your Retirement
Posted on: 31 May 2019
When it comes to retirement, there are some tricks that you can employ that will help you reach your retirement goals sooner. One should always aspire to reach their retirement goals as soon as possible because you never know how long you will be able to work like you are right now.
Start By Eliminating Debt
When you reach retirement age, you don't want to be carrying debt with you into your retirement. You don't want to be spending your retirement income paying off credit cards, paying down your mortgage, or financing a new vehicle. Generally, one's retirement income is less than their working income. In order to get by on less, you need to have less debt as well.
That is why you need to prioritize paying off your debt if you want to put retirement in reach.
Work to pay off your debt over time; this will stretch your retirement money further. Pay off high-interest credit cards, then move onto smaller loans and finish by paying off any large loans you have, such as your mortgage. Getting rid of debt will make it easier to get by during your retirement years.
Create Multiple Streams of Income
When you hit your retirement years, you don't want to depend on just one stream of income, such as your social security text or your 401(k). You want to have income coming in from multiple different sources.
That is why you should have a 401(k) as well as an IRA. With a 401(k), the money will be taxes as you withdraw the money since you didn't pay taxes as you put the money into your 401(k). With an IRA account, the money was already taxes, so you will not pay taxes when you take money out.
You should also have a separate investment account outside of your official retirement account. With your separate investment account, you can pull in more money.
You can also invest in real estate, which is another great source of retirement income. The more income streams you have, the better off you will be when you start your retirement.
Consider a Second Career
Finally, consider a second career. Now that you are not depending on the income from your job, give yourself the freedom to have a fun second career. If you always loved fishing, become a fishing guide. If you really like to numbers, become a part-time accountant. If you like interacting with others, get a customer service job.
Have some fun and take a job with less responsibility that will allow you to pursue your passions and interests.
Getting ready for retirement should start as soon as you start working. Work at paying down your debt, build up multiple streams of income, and consider a second fun career for your retirement years. Use a retirement calculator to verify you are on the right track for retirement.
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