What you should know ahead of your retirement
BOWLING GREEN, Ky. – Retirement, it’s something that everyone looks forward to.
But as you get closer to that date, more questions can emerge than answers, especially when it comes to savings.
Retirement savings can be a large cause of stress for those nearing the end of their working days. Making sure you have enough to live the lifestyle you want after retirement starts long before even thinking about retirement.
Experts say that investing and saving for retirement as soon as you can can help ease the burden, but there should not be stress in those days leading up to retirement, as long as you start prepping for the future.
“For younger investors who may think retirement is far away, they’ve got to start, and they have to save consistently. And for people who are in their peak earning years, they want to make sure that they’re saving as much as they can from their paycheck and to reevaluate their portfolio to make sure that the level of diversification and the risk that they have in the portfolio is the right one. And for those who are nearing retirement, don’t be scared to be getting ready for retirement. It should be a great moment to celebrate,” said Kelly Han, head of retirement research at Vanguard.
Before you enjoy those golden years, Han says that you have to prepare accordingly and that investing in the market via 401ks or stocks and bonds will help create income over time.
“One of the first things that you have to do as you’re preparing for retirement is what are all of my sources of wealth and income? Social security is going to be a great buffer for many people, right? Because it’s going to offer the guaranteed stream of income for the remainder of your life. And starting out investing in retirement is not a bad thing. Just do it in a judicious manner. Knowing what risk you can take on in your portfolio,” Han said.
Han says that as you get older, the goal moves from generating wealth to creating income with that wealth and finding the best ways to achieve that. But even if you have never saved before, starting at any age is important for your future.
