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Whether you are just entering your career or nearing its end, you should think about and prepare for retirement. Knowing how much to save, how best to save, and when to retire are complex questions. Fortunately, there are some trusted financial experts who have shared their insights on these very topics – including Tiffany “The Budgetnista” Aliche, Robert T. Kiyosaki, and Suze Orman.
Related: Things Every 50 Year Old Should Know About Retirement
Here’s what these top experts – and more – say you should be doing to prepare for a financially secure retirement.
Last updated: April 21, 2021
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Don’t put off saving for retirement – even if you’re in your twenties
“The sooner you start, the sooner you can put your money to work for you,” wrote Tiffany “The Budgetnista” Aliche, co-host of the Brown Ambition podcast, in a blog post. “Your 20s is a great time to start because this is the time in your life when you can afford to put away a large chunk of your income. (…) The earlier you start, the better the chances that you will be cared for in old age. Retirement seems a long way off, but it will be here sooner than you think. “
Check out this: 27 Ugly Truths About Retirement
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First, ask yourself these 5 questions
As you figure out your retirement goals, ask yourself these five questions posed by Danetha Doe, founder of Money & Mimosas:
When do you want to retire?
How much does it cost you to live monthly Use your weekly money date calculations to sum this number.
What have you saved so far?
What other sources of income do you have in retirement?
What would you like to do in retirement? Traveling, doing yoga retreats alone, voluntarily? All of these determine how much extra cash you will need in retirement.
Read: Jaw Dropping Statistics on Retirement Status in America
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Reconsider your retirement age
If you’ve taken the time to figure out how much money you need to retire and compare that to what you’ve saved, you may find that you are not on the right track to get around to retire if you want.
The story goes on
“There is another way to brighten up your retirement image than to save more, and it works longer,” wrote Jill Schlesinger, founder of Jill on Money, in her book, “The Stupid Things Smart People Do With Their Money.” “Some people may not be able to work any longer while others may feel nauseous at the thought of stamping longer than necessary in a minute. For the rest of us, we should work longer hours as it a) gives more time to contribute to your retirement plan; b) prevents us from diving into our nest egg; and c) can increase our monthly social security retirement pension. “
See: 30 Biggest Threats To Your Retirement
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Pay yourself first
In his book, The Automatic Millionaire, David Bach writes that the way to retire rich is to pay yourself – automatically retire a portion of every paycheck.
“Save 15 to 20% of your pre-tax income on a tax-privileged retirement account,” like a 401 (k), 403 (b) or IRA, he wrote.
Helpful: How to protect your retirement savings during the coronavirus pandemic
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If you can’t make a 15% contribution now, automate the scaling to reach that amount
Not everyone can save 15% on their paychecks right now, but that should be the ultimate goal, said Jason Zweig, author of The Intelligent Investor column for the Wall Street Journal.
“If you feel like you can’t save the maximum right now, sign up for an ‘automatic escalation plan’ to increase your contributions later,” he told Frontline.
Continue reading: The Complete Guide to Your Best Retirement Age
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Keep contributing to retirement accounts even during the bearish markets
“One of the biggest mistakes investors make is panic during a bear market and an urgent investment hiatus,” wrote Erin Lowry, author of Broke Millennial, in a column for NextAdvisor. “Do not do it. Stay tuned with your posts (assuming you can meet your basic needs). That way, you can shop your way during a slump and make sure you don’t miss out on the market rebound. It’s incredibly difficult (read: impossible) to time the market, so it’s better to just stay in line with the regular contributions to your retirement account – a method better known as “dollar cost averaging”. “
Do this: 10 renovations before you retire
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Automate retirement planning with lifecycle funds
“Target funds (or lifecycle funds) are great funds for people who don’t want to worry about realigning their portfolio every year,” wrote author Ramit Sethi on his blog. “They diversify your investments for you based on your age. And as you get older, funds automatically adjust your asset allocation for you on the cut-off date. “
However, there is risk associated with these funds so they are not for everyone, he said.
“For you, the ease of use that comes with Lifecycle Funds could outweigh the loss of income,” Sethi wrote.
Consider 50 Cheapest Places to Retire Across America
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Invest in assets that will bring you income in retirement
The author of “Rich Dad Poor Dad”, Robert T. Kiyosaki, describes the way “Rich Dad” is preparing for retirement in one of his blog posts:
“The more cash flow you can get out of your wealth, the greater your wealth would be. It was the way to win the game and win in life.
“Today (my wife) Kim and I invest in cash flow assets like real estate, oil wells, businesses, and more. Every month, these investments put cash into our accounts to cover our expenses. (…) Once you understand the words “infinite returns”, you will never have to work for money again. “
401 (k) vs Roth 401 (k): Which is better for you?
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Delay in collecting social security
Even in difficult financial times, Suze Orman recommends postponing your social security benefits as long as possible.
“The benefit you can get if you wait until you are 70 to start collecting is 76% higher than the benefit you get if you claim at 62. That is an enormous return, “wrote the author of” Women & Money “on her blog.
Read: 29 Brilliant Retirement Ideas For All Ages
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Get help from a financial advisor
Retirement planning is a complex endeavor, so it can be worthwhile to seek out a professional to help.
“Working with a financial planner can be a smart way to stay on top of what’s happening and leverage the expertise of a professional to make sure you’re saving enough and on track to meet your goals now and in the future,” so Farnoosh Torabi, host of The So Money podcast, wrote on her blog. “To begin your search, ask friends, family, and coworkers for their recommendations. Initial consultations with planners are usually free and this is an opportunity to see if working with this person would be appropriate. Look for planners named CFP or Certified Financial Planner. “
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This article originally appeared on GOBankingRates.com: Top Tips for Retirement From These 10 Experts