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For 2024, many people are considering resolutions. This includes financial settlements.
In a recent GOBankingRates survey, nearly 10% of Americans said retirement planning is at the top of their list of financial goals for 2024. (The most popular resolution was “save money,” with 22% of respondents citing it as their top new goal). )
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Of course, saving for retirement will look a little different depending on how close you are to retirement.
Dominic James Murray, CEO and independent financial advisor at Cameron James, said: ‘The best retirement resolutions for 2024 are ones tailored to our age and stage in life. It’s clear that it’s something.” “The key for young people is to establish solid savings habits. In midlife, active growth and diversification are important. And as retirement approaches, fine-tuning savings and retirement income is key. The focus shifts to understanding the source.”
No matter where you are in life, there are retirement-related goals you can set in the new year that will set you up for success later on. Here are some ideas.
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30s: Build a strong foundation
At this point in your life, you should focus on establishing solid financial habits, Murray says. Now is a good time to start making consistent contributions to a tax-advantaged retirement plan, such as a 401(k) or IRA.
Don’t worry if you feel like you can’t contribute much yet. Consistency is much more important than depositing large amounts of money. “The magic of compound interest over the last decade cannot be overstated,” Murray said. “Recurring giving means not only saving for the future, but also significantly increasing your investment over time.”
He added that making regular donations to these retirement vehicles is a promise to his future self.
“At this stage, it’s important to lay the foundation for a secure financial future and balance your current lifestyle needs with your long-term retirement goals,” Murray said.
Suze Orman: 5 facts about Social Security that soon-to-be retirees should know.
40s: Accelerate savings and investment
As you enter your 40s, it’s an ideal time to review your retirement savings strategy and increase your retirement contributions if possible. You need to make sure your retirement savings are on track and make adjustments as needed.
Murray said now is also the time to take full advantage of the potential of employer matching programs, which can significantly increase the size of your portfolio and the potential for compounding returns.
“Diversification of investments is critical at this stage to adapt to changing financial objectives and market conditions, and to balance growth with potential risk,” Murray said. “It’s also important to balance aggressive savings with enjoying your current lifestyle.”
50s: Refine your retirement vision
Murray says your 50s are an important time to fine-tune your retirement plans. You should focus on getting a clear picture of what your ideal retirement lifestyle looks like and adjusting your savings strategy accordingly. If you find yourself falling behind, now is the time to start making make-up contributions to your retirement savings account.
“This is also an opportunity to review other aspects of retirement planning, such as potential medical expenses and how to manage them,” Murray said.
Overall, it’s important to be realistic about your retirement expectations and ensure you have enough financial planning in place to support the lifestyle you envision.
60s: Prepare for the transition to retirement
As you enter your 60s, you need to prepare for a smooth transition into retirement. That includes figuring out your retirement income sources, such as pensions, Social Security benefits, and withdrawals from other savings.
However, finances are only half the story. “Your 60s is a time not only to prepare financially, but also to mentally adjust to the changes in your retirement lifestyle,” Murray points out. “This requires a plan that takes into account not only the financial aspects, but also how you will spend your time, stay active, and maintain a fulfilling lifestyle in retirement.”
Murray also emphasized that while age-appropriate retirement strategies are essential, the role of financial advisors in developing and maintaining these strategies cannot be overstated. Therefore, consider working with an expert when setting your resolution and adapting your goals over time.
“Throughout these stages, goals and strategies may differ, but the basic principle remains consistent: making informed decisions for a comfortable and fulfilling retirement,” Murray says. he said. “Working regularly with a financial advisor will ensure that your retirement plans are aligned with your changing life circumstances and financial goals.”
GOBankingRates Details
This article was originally published on GOBankingRates.com: Here Are the Retirement Resolutions You Should Be Making Based on Your Age
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