Bankruptcy Filers Are 20% Seniors: How to Retire and Be Financially Secure

Retire-and-Be-Financially-Secure

Hannah Whittenly, Negosentro |  You may be part of the growing trend that thinks that saving for retirement is a hassle. Of those that are currently declaring bankruptcy, 20% of them are seniors that are nearing retirement age. Here are some ways that you can retire and maintain your financial security.

Make Savings a Monthly Expense

Planning for retirement is something that you should start doing as soon as possible. Many people make the mistake of thinking that there will be time to save for the future later. This isn’t always the case. You may get caught up with other expenses. There may be other ways that you would rather spend your money than putting it into a savings account. This attitude is what is leading to the growing trend of older Americans declaring bankruptcy. Determine an amount each month, and resolve to put it in a retirement account.

Diversify Your Retirement

Having a well-rounded portfolio when it comes to retirement can grow your nest egg quicker. Don’t just consider the short term investments. Look towards your end goal of being able to retire. Use a retirement calculator to help you know how much money you will need to retire in the future. Invest in stocks, bonds, and mutual funds in many different sectors. There is no sure fire way to know which industry will pay off big. You’re hedging your bets by diversifying your portfolio.

Look Into Roth IRAs

Many people don’t stop to consider their tax burden when they do retire. Investing in Roth IRAs is one way to reduce your tax burden. This is because with a Roth, you pay the taxes before you invest it. This doesn’t mean that you shouldn’t also invest in other types of retirement accounts. This is just one way to look towards what your future holds. You have to guess what your financial situation will look like when you do retire.

Set Long Term Goals

You need to have financial goals in order to maintain security when you retire. This means that you need to look into financial planning. The benefit of using a service is that you have someone that can help you through the process. There are a lot of factors that you need to take into consideration. Your monthly expenses is only one of those factors. Creating financial goals will get you on the path to having a stable financial future.

You don’t want to lag behind when it comes to saving for your future. Use these tips to get you started on your path to being financially ready.