When you think of your dream retirement, you may imagine yourself traveling around the world, pursuing hobbies that you never had time for while working, or spending time with your friends and family. The unfortunate truth is that if you do not start planning right now, your retirement may not look so good. Here are a few tips to help you.
The first thing you need to do is get on a budget. You need to know exactly how much you make and how much debt you have. If possible, get your debt paid off as quickly as you can and build an emergency fund. Once you accomplish those goals, you will have more money in your budget for retirement savings.
The next thing to do is look at the options that are available for IRS retirement plans. You may want to work with an advisor who can point you in the right direction. You should also take time to do research on the different accounts that may be available for you. The goal is to put aside as much as you can to take advantage of compound interest. You also want to find an appropriate account that will offer the most tax advantages.
If you work for a company, you will likely be able to set up a 401(k) or SEP IRA. If you work for yourself, you need to find out which IRS retirement plans you qualify for. This could include a SEP IRA, a Roth IRA, or a traditional IRA.
