HOW TO PLAN FOR RETIREMENT AND WHAT TO DO IN YOUR EARLY 40s
Retirement has been a word that continues to bring fears to many workers especially as they aged in their various workplaces. But they forget that saving for retirement can be a balancing act, particularly if you put it off until a time when you are earning a bit more money. However, the more you earn the greater your financial responsibilities become, and so by the time you reach your 40s, your income might be stretching in several different directions. But this doesn’t have to doom you to a frugal retirement. How can you plan for a retirement that will be healthy to you and those around you? These steps will guide you.

What is Retirement?
The word retirement could have various meaning. Retirement is the point were a person stops employment. A person may also semi-retire by reducing work hours, or resume working following retirement. Many people choose to retire when old age catches up to them. in most countries of the world, the idea of retirement is of recent origin, being introduced during the late 19th and aearly centuries. Germany was the first country to introduce retirement in 1889.


Nowadays, most developed countries have systems to provide pensions on retirement in old age which may be sponsored by employers or the state. Today I can tell you that retirement with a pension are considered a right of the worker in many societies, thus, the following steps if applied will make you plan for a better retirement.
BE UP AND RUNING
Here I mean you should step up the plans effectively. Consider stepping up your contributions towards savings. It’s not too late to start for retirement if you haven’t started already. You will have to make some tough choices and start saving more when you are above you 40 years. Maybe a piggy bank or an account with no ATM can help you start a retirement savings. The first point of call is or you to hit the accelerator and plan for it.
OPEN A RETIREMENT BANK ACCOUNT NOW
This should be taken seriously if you want to make a good retirement plan. You should consider opening a retirement savings accounts. You may decide to contact your bank for further details and directive on this but let it be separated from your normal salary or savings account. Be sure when the retirement saving account is open you don’t have any access to its withdrawal so easily. At least a monthly alert from you should be diverted their most of the times. This will help you plan for a retirement plan.

CHECK YOUR EXPENCES AND EXPENDITURES
It’s worth it to be honest by assessing your expenses and expenditures. You can use this to determine exactly how much money you must save each year. A better retirement plan should make you to save at least two times of your income before the year ends. You should be able to know how much you earn and how your expenditures will look. Your monthly budget here as well as your life styles will help determine the kind of retirement plan you will have. I used to have a piggy bank at home where I drop little penny daily or weekly. By December 26 each year, I break the piggy bank and take the funds to deposit in my retirement bank account. That will go along way if you can go along with me.
DO AWAY WITH DEBTS
Before you start planning for retirement, you should do away with any debts you have incurred. Above all living within your means will help create a better atmosphere for retirement saving plans. There is no ideal age to start saving for retirement but the early years of 40 can be an ideal time. Your 40s are probably your peak earning years, so they should also be your peak saving years. Most of all plan your spending culture and get rid of all debts. Most people can achieve 15 percent in annual savings if they don’t spend money that they don’t absolutely have to.

EXPLORE OTHER SOURCE OF FUND
Look beyond your employment benefits to fund your retirement. If you have save money elsewhere, you should take some part and put in your retirement account. Take out extra jobs to fund your retirement accounts and make the very best on them by living a simple life.
DIVERSIFY YOUR INVESTMENTS.
To plan for a better retirement you will need to diversify your investments. Safer investments allow you to branch out for optimum growth. You have 25 years or so until retirement, so you are still in a position to sustain a bit of risk. Invest in stocks and bonds as well. Putting your money in bonds is somewhat on the conservative side, whereas investing in stocks sometimes requires nerves of steel. But you can minimize the risk of stocks if you play smart, says John Risley, President of L.O Thomas and Company, An investment firm in Linwood, New Jersey.
Invest in products that people use every day because people are going to continue needing them in the future. By diversify your investment you tend to make greater gains which can be in turn channel to your retirement bank account.
These days, a better term for retirement might be financial freedom or independence, i.e, retirement isn’t connected to a specific age, and it may entail continuing to work or volunteer. It’s all about doing what you want, when you want.


SOURCE: valentine uwakwe @www.valentine202.com