The average life cycle of an American is simple. It involves two years of kindergarten, six years of primary school, two years of middle school, and four years of high school. Also, you might have an optional four years of college and work for the rest of your life.
It seems that a single significant achievement shapes each focal point of living — graduation, promotion, and finally, retirement. But perhaps the goal of every working individual is to let go of the monotony of everyday life and eventually retire.
“Can I Retire Yet?” Some people ask this golden question the moment they enter the workforce and realize that wasting away their lives in a corporate setting is not for them. If you feel that way, know that you’re not alone.
A published article states that approximately 53% of Americans are unhappy at work. Hating what you do can be very toxic, so it’s normal for workers to save as much as possible in hopes of retiring early. It may seem simple — save up the suggested $1-1.5 million and spend your days lounging around your backyard with your dog.
But retirement is more complicated than that as it requires a significant amount of preparation. Here are the primary things you need to start working on to escape the monotony of work and plan for your retirement.
You Need To Be Well Informed About Retirement
Retirement may mean letting go of your primary job, but completely cutting off your streams of income and relying solely on a fat bank account is dangerous. For one, that concept has a significant flaw: it does not consider inflation.
A million dollars may seem a lot at first glance, but if you only have that much to live with for the rest of your life, then you will have to scrimp and save every penny. Moreover, if the economy were to take a wrong turn, then that lump sum may become completely null.
It’s crucial to secure yourself a retirement income paycheck, which is essentially a stream of income that does not require you to put in much effort. It can be in the form of investments, stocks, bonds, and the likes.
Regardless, it will do you good to be well-educated on what you should do to be able to retire and still be happy and financially secure. Reading through a retirement blog, listening to podcasts, and looking through a retirement master kit are beneficial resources to answer the question, “can I retire yet?”
Professional financial planners offer tips and advice to help you retire comfortably, and perhaps even live a glamorous post-workforce life. They will go into the technicalities on topics such as inheritance, healthcare, insurance, reverse mortgage, and other relevant aspects that will answer your retirement concerns.
Take Advantage of Your Monthly Contributions
Believe it or not, the monthly contributions that you dread, such as your social security, Roth IRA, and 401K are the first steps to prepare for retirement. For instance, your Roth IRA taxes you for depositing money but relieves you of withdrawal tax. This arrangement is incredibly useful for retirement as you will be able to safeguard yourself from any tax inflations.
Meanwhile, a 401K is primarily a retirement plan. You can make contributions that will eventually go back to you through a pension fund. Therefore, it’s essential to negotiate these terms with an employer when applying for a new job so that you can make the most out of it.
However, there are nuances to monthly contributions that can help you with retirement as well, such as whether you should switch your IRA to a regular Roth, and so on. A website with resources on retirement will be able to provide you with the necessary information.