| Many of us dream of retiring at 50. More often than | | | | even be able to reinvest the equity into your |
| not, we're still planning for it at 60. There's no doubt | | | | retirement account. |
| about it, the hardest part of the retirement planning | | | | There are some great retirement planning tools online |
| process is getting started. | | | | at sites - such as Fidelity's Retirement Income Planner |
| The days of being able to retire on social security | | | | - that can help you estimate how much you'll need in |
| alone are long gone, and today's retirees must rely | | | | your retirement account to achieve your retirement |
| on personal investments and/or earnings as well. | | | | dream. |
| Whether you're 30, 40, 50 or 60, here are a few tips | | | | Step #4: Develop your savings plan. Here are some |
| to get you on track for a rich and rewarding | | | | options recommended by the experts: |
| retirement. | | | | - Workplace retirement plans with employer matched |
| Step #1: Make retirement income planning your top | | | | contributions are optimal savings plans. These include |
| priority. The closer you are to retirement age, the | | | | 401Ks, 403(b), 457 or SIMPLE IRA accounts. If you |
| more important it is to make saving for retirement | | | | or your spouse qualify for one of these plans, |
| your primary focus. And the closer you are to | | | | consider contributing the full amount to receive the |
| retirement, the more you must allocate to your | | | | maximum employer match. Not only are any |
| retirement account. | | | | employer contributions essentially free money, the |
| Step #2: Organize your financial records. Put all your | | | | contributions and earnings are tax deferred if you |
| investment records in a file box or binder and | | | | comply with the requirements. |
| organize by type: IRAs, 401Ks, savings bonds, social | | | | - Even when they are unmatched, tax advantaged |
| security, etc. One of the keys to retirement income | | | | accounts can be smart retirement planning options. |
| planning is to keep track of you're doing. Another | | | | After tax contributions to Roth IRA or Roth 401(k) |
| key is to consolidate and pay off your debt. | | | | accounts and deductible contributions to Traditional |
| Step #3: Understand how much you need in your | | | | IRA's fall into this category. Because there are |
| retirement account to retire comfortably. Whether | | | | penalties for tapping these accounts before you |
| you use one of the standard formulae or itemize | | | | reach retirement age, the temptation to spend these |
| your expense estimates, this is a critical step. | | | | dollars is lessened. |
| There are lots of variables that will affect this | | | | - Make sure your savings are automatically deducted |
| number. For example... | | | | from your paycheck so that your retirement saving |
| - Do you want to continue working part time or in a | | | | is as painless and transparent as possible. You'll find |
| less stressful or demanding job? If you think you'll | | | | that it's a lot easier to scale down your lifestyle to |
| have earnings in your retirement, estimate them | | | | meet your budget if your allotments to your |
| conservatively. | | | | retirement account are deducted before the money |
| - Do you have a pension or 401K from work that will | | | | is deposited into your checking account. |
| supplement your income? | | | | Step #5: Be accountable. To yourself, your spouse, |
| - Would you consider moving to a location with a | | | | your financial planner or asset manager if you have |
| lower cost of living and a more leisurely lifestyle? For | | | | one. The best way to stay on track is to make |
| some ideas, see our retirement communities section. | | | | promises that you want to keep. And a little guidance |
| - Are you amenable to trading down to a smaller | | | | from a retirement planning expert can go a long way |
| house so that your housing costs are reduced? If | | | | to achieving your retirement dream. |
| you've owned your home for many years, you may | | | | |