How to plan for your Retirement

By the time you reach adulthood, you probably have learned the basic financial concepts. These include getting a job, opening a checking account, saving account, credit card account, do your taxes, balancing bank balances, etc. However, these concepts are only basics. Most importantly, you will only survive with these concepts, not live. The financial world is a competitive place. Ask yourself a question: do you want to work until the age of 65 and get a basic social security retirement income? or do you want to retire like how you exactly want to retire? If you are thinking about the second question, you need retirement planning.

Divide the age you want to retire by a decade to make your planning easier. Then, for each decade, set your goals and milestones. We’ve given an example below that demonstrates how to make retirement planning easier. The example below assumes you are 25 years old and intend to retire at the age of 60.

Before turning 30, Reach these milestones

1. Get a good-paying job
2. Open a high yield saving account and start saving money
3. Create and adhere to a financial allowance
4. Pay off your loan and debt
5. Get a health and life insurance
6. Invest your capital: Stocks, REIT, ETFs, Cryptos, Mutual Fund, Bonds
7. Open an IRA (Individual Retirement Account) account: Traditional IRA or Roth IRA
8. If your salary is $40,000, you should save at least $20,000. Your savings at the age of 30 will be 100,000. 

Before turning 40, Reach these milestones

1. If you have not already finished paying off your loan or debts, do so now. You do not want to live your retirement paying debts. 
2. Prioritize your retirement savings. Verify your investment portfolios to ensure your portfolios are heading the way you want. Also, verify your IRA account is performing well. 
3. Ensure you utilize your financial budget. Try not to spend money on things you don’t need.
4. You would have saved $100,000 if you saved $20,000 each year from your $40,000 salary. Now, let’s presume your salary increased to $50,000 per year. If you save $25,000 per year, your saving will be $350,000 (added $100,000 from last decade) at the age of 40. 

Before turning 50, Reach these milestones

1. Make a will. It’s time to decide who gets what in the event of your death. 
2. Prioritize your retirement savings. Verify your investment portfolios to ensure your portfolios are heading the way you want. Also, verify your IRA account is performing well. 
3. Ensure you utilize your financial budget. Try not to spend money on things you don’t need.
4. You would have saved $350,000 by now. Now, let’s presume your salary increased to $70,000 per year. If you save $37,500 per year, your saving will be $725,000 (added $350,000 from the last decade) at the age of 50. 

Before turning 60, Reach these milestones

1. Verify all of your investment portfolios, IRA account, and saving accounts are optimal. 
2. Meet with a retirement planner and get bits of advice. Ensure you do get advice from your financial institution as well. 
3. Ensure you utilize your financial budget. Try not to spend money on things you don’t need.
4. Fill and complete retirement paperwork at the end of the decade. 
5. You would have saved $725,000 by now. Now, let’s presume your salary increased to $85,000 per year. If you save $42,500 per year, your saving will be $1,150,000 (added $725,000 from the last decade) at the age of 60.

On top of those savings, you may also have other retirement methodologies i.e. retirement package from your job, own rental properties that generate cash flow, etc. You may also get social security retirement benefits. Happy retirement. Cheers!