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It may not be time for you to retire yet, but it’s never too early to start planning. Begin saving money now to better enjoy your retirement without worrying about finances. Learn some key considerations to make before planning for retirement.
When is it time to retire? You can start claiming Social Security benefits at age 62, but you can decide to retire earlier or later. Your decision will be based on when you think you will have enough money saved, the best conditions for retirement, and your preference on timing.
How can I start planning for retirement? Get familiar with the Social Security benefits you can earn at your expected retirement age. Calculating your net worth to add to your retirement goals is wise. Your net worth is the total assets you own after you pay debts. Assets can include cash, cars, boats, jewelry, houses, investment accounts, land, or rental properties. If you are actively paying off loans, mortgages, or other debt, deduct those costs from the value of your assets.
How can I invest for retirement? You have many investment options, such as mutual funds, stocks, and bonds. You can mix and match your investment decisions to accommodate your needs down the road. Pay attention to administrative and transaction fees, as well as expense ratios. How much does it cost you to invest in a certain option versus how much the option earns for you in return?
What is a retirement trust? You can designate your trust as the beneficiary of some or all your retirement accounts. Assets held in a retirement trust may be protected from creditors, lawsuits, and other threats. A retirement trust also gives you the tax benefits of a retirement account.
What kind of retirement documents do you need
while preparing? Social Security benefit statements, tax returns, pension statements and more. Also include other income sources like rental properties, allowances from family members, or inheritances. It would be best if you also created or updated your Will, Durable, Financial, or Medical Powers of Attorney, and other important personal legal paperwork
Your LegalShield Provider Law Firm can advise you when planning your retirement, and also prepare your Will and powers of attorney prepared at no additional cost. If you still need to become a member, consider enrolling at your earliest convenience.