After struggling with my finances for more time than most people realize is possible, I began thinking more seriously about what I could do to make things right. I began working hard to go through and identify challenges that I was faced with, including the fact that I had several kids that cost a lot of money. I began thinking of ways to work on saving cash, and it was really amazing to see how much of a difference something like skipping drinks with dinner and working on finding foods we could make at home could really be. I wanted to start a new website all about creating a more solid financial plan. Check out this blog.
3 Steps To Help You Plan For Retirement When You're Single
Not everyone is going to end up with a partner whose income they can rely on during their retirement years. If you are currently single, it makes sense to plan for a retirement that you will be financing alone.
As a single individual, you may end up facing higher health care costs as you age, due to the need to get outside healthcare assistance, since you don't have a partner to rely on for help. If you anticipate that you will be going into your retirement years as a single individual, you need to make sure that you are saving and making the right choices right now.
Use Tax-Deferred Saving Options
When you are married, you can bring in a higher amount of earnings at a low tax bracket. As a single individual, you face higher taxes on the same amount of income, which is why it is important to use as many tax-deferred saving options as possible. Tax-deferred savings options help put the money back in your pocket while also reducing your tax burden.
Some of the best tax-deferred saving options you can invest in are a 401(k) and an IRA. Health savings accounts, which you can use to pay for your health care needs, are another useful tax-deferred saving option. Take advantage of as many tax-deferred saving options as possible, in order to reduce your tax burden and increase your savings.
Max Out Your Retirement Options
If you are able to, make sure that you invest the maximum amount possible into a 401(k) and an IRA each year. Once you are over the age of 60 and can save more into these retirement accounts, be sure to increase your contributions. Maxing out your retirement savings each year at as early an age as possible is the best way to ensure that you have enough money to live off of when you retire.
Use Other Investment Strategies
Don't just depend upon your retirement account to bring in money. Create a brokerage account, so you can make investments that you can use between now and your retirement years. Invest in property and physical items that will gain value over time. Put a portion of your savings into CDs and treasury bonds so that you can make a little extra money off of your savings each year.
When you know that you will be dependent upon your income when you retire, it makes sense to be smart about saving for your retirement. Use tax-deferred saving options, and max out your retirement contributions each year. Engage in other economic strategies that are both high and low risk in order to increase your savings.
For more information, talk to companies like Family Financial Partners.