The Ultimate Guide to Maximizing Your Income for Retirement
Effectively planning for retirement takes strategy and precision. The choices and consequences for retirement planning have never been more challenging. Taking the time to consult with a skilled accountant, financial planner, or CPA who specializes in this important area is a wise investment of both time and money. As people continue to live longer while health care costs continue to rise, it is difficult to accurately project average long-term care costs or other details such as inflation. These are two areas where a professional can help. While thinking about retirement is best done decades ahead of time, even reviewing plans as one nears retirement can help identify ways to maximize income to increase the likelihood of being as comfortable as possible during retirement years. Consider the following tips for maximizing income for retirement at any age:
1.Pay Yourself First
While this may seem like a tip from savings 101, life can get in the way. Taking the time to save something, no matter how small, is an important habit to have even in lean years. A skilled CPA or other experienced financial advisor can help a couple set family goals for savings and work long-term plans into the everyday budget. For a single person who may be more inclined toward splurge spending, working out a detailed budget and long-term financial strategy may help make the retirement years significantly more comfortable in exchange for a few luxuries now. Once people see choices and consequences on paper, it is often easier to make more informed decisions.
2.Utilize all a Company’s Benefits
Many employees do not take full advantage of the wide range of company benefits. Professionals can put more money away if they look at programs like maximum matching retirement investments and other perks like stock options. Additionally, the flexible spending accounts may be used for more than just prescription medication, yet that is often the only way people use them. Lastly, if a company pays tuition fees for related classes, it may be worth looking at overlapping coursework for developing a niche area for future consulting. For example, new or recently hired accountants use this when they have a desire to become CPA’s or when their employer is investing in their staff’s continuing education. While the coursework may help round out present skills, keep an eye out for courses that could also help launch a second career when the time comes to look at such options.
3.Look at the Bigger Picture
A seasoned CPA or financial planner with expertise in the area of retirement planning can look at an entire family’s income and expenditures to make suggestions that benefit the whole family. In blended families and those with several generations under one roof, it is becoming more common to pool resources and plan holistically. In cases where large multi-generational families are cohabitating, seeking the assistance of a third-party unbiased advisor can result in a better financial strategy for everyone involved.
4. Save Early; if not Early at least Save Smart
Younger professionals who set up a retirement strategy early in a career build healthy savings habits that will follow them through their entire professional life. Making regular “check-up” appointments with an accountant or CPA can help the younger professional make adjustments as needed. Even older professionals can benefit from seeking advice from a skilled financial advisor who can assist with an aggressive retirement strategy, even when life throws an unexpected curve ball or the initial plan takes a detour. With the convenience of online banking, many deductions for items like an IRA or 403(b) or 401(k) can be taken out over each pay period making saving for retirement more convenient than ever.
5. Stick to Goals and Plot Progress
It is much easier to stick to a goal when progress can be seen and measured. Tracking progress toward retirement goals and visually seeing the graphic of how the “nest egg” is doing over time can help motivate professionals into looking at spending habits. Meeting benchmarks along the way and budgeting for rewards throughout a long-range savings strategy can help professionals stay engaged in the process of creating more income for retirement. Celebrating milestones in a long-term journey is always a good idea and proper planning makes the celebration that much more enjoyable.
With so many of life’s details to juggle, professionals often wait longer than they should to actively and aggressively engage in a retirement savings plan. Maximizing income over the long haul requires sound knowledge, a well-informed strategy, and an on-going personal commitment. With the assistance of a skilled financial advisor, CPA, or accountant specializing in retirement, there are a number of straight forward investment products and services that can augment an individual’s efforts to maximize income. With the goal of a happy, healthy, and prosperous retirement in the years ahead, professionals maximizing income today should be on their way to a more wealthy retirement tomorrow.