SUZANNE KVILHAUG verified the accuracy of the information. What Is Retirement Planning?
Planning for one’s retirement entails figuring out what one wants to earn in retirement and how to get there. Managing assets and risk are all part of retirement planning, as are determining expenses, setting up a savings plan, and locating sources of income.
Estimates of future cash flows are used to determine whether the retirement income objective is achievable.
Although you can begin at any time, it is best to incorporate it into your financial planning as soon as possible. That’s the best way to make sure your retirement is fun, secure, and safe. It makes sense to pay attention to the serious, possibly dull part because of the fun part: preparing your route there.
The most important takeaways are that planning for one’s retirement should never be put off.
Financial strategies for saving, investing, and ultimately distributing money intended to support oneself during retirement are referred to as “retirement planning.”
Individual retirement accounts and 401(k)s, two of the most common investment vehicles, provide investors who have saved for retirement with money with certain tax advantages.
Assets, income, liabilities, and life expectancy are all factors to consider when planning for retirement.
You can contribute a maximum of $22,500 to a $401(k) in 2023 if you are under 50, up from $20,500 in 2022.
