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6 Signs Your Retirement Planning is on the Right Track

Date : Feb 21,2014
By : Karleia Steiner

Retirement planning can be tricky business, and it is hard to know if you will be well prepared. Here are six signs that your planning is going well:

1) You have a goal in mind:

It is hard to plan if you don’t know what you are planning for. Go on-line and use one of the many calculators that will help you come up with how much savings you will need. You will want an account large enough to generate interest to cover your living expenses. This can get a little confusing. It may help to talk to a financial planner like Brandon Burton, whose financial services can help you nail down a target number.

2) You are properly insured:

Life insurance, disability insurance, and health insurance are a must during planning for retirement. It will make sure your loved ones are provided for in the event of your death. Additionally, it will help protect your nest egg if there is an accident preventing you from working or if you need medical attention. Don’t skip this step.

3) You have no debt:

Debt will quickly derail any planning you are doing. The interest will reduce the amount you can be feeding into your retirement savings. Eliminating debt will get you on track for a more secure retirement.

4) Living within your means:

You must control your spending now. If you are living paycheck to paycheck, your retirement picture is not pretty. Make a budget, rein in the spending, and starting saving right away.

5) You are paying low fees:

Most funds have a fee associated with them. If the fees on your funds are high, you could be chipping as much as 40% away from your nest egg. Review your account and make sure you are funding your own retirement and not the fund manager’s.

6) You are healthy:

This is actually a double whammy. Being unhealthy now means a shorter retirement, and it means your money is paying medical bills instead of funding your retirement. Your lifestyle now will catch up with you. Health costs are a large portion of expenses during retirement. Be healthy now, continue this lifestyle, and have fewer bills in the future.

None of us are perfect on all six of these, but now you know what you have to do. If the signs are saying your retirement planning is off track, make a change. Your future self will thank you.