A good financial consultant will advise individuals who go to him/her for advice to begin planning and saving for retirement as early as they secure a stable job. For individuals who take this advice, even if it is their first job and they are in their 20’s, they will be able to create a retirement plan and be in a position to set some money aside monthly for their retirement fund. However not everyone follows this vital advice. A lot of working individuals always procrastinate on formulating a retirement plan and once they decide to do so they realize they are very close to retiring. However this does not imply that if you are late then you should give up on preparing for your retirement life. Below are some useful tips for people who are nearing their retirement age to help them live comfortably during their golden years.
Clear your credit card debt, loans and medical bills
Ensure that you commit on reducing and eventually clearing debts and loans so that the money you generate goes into your personal saving and investment funds which you will make use of after you retire. Make a point of checking the interest rates applied on your loans and credit cards to find out if you can get lower rates.
Prepare your cash reserves or emergency fund
Financial advisors recommend that you should save at least three to six months of your monthly income in an account that is secure and easily accessible. This implies that you should have some cash in your savings account for every planned expense. For instance if you plan on renovating your kitchen in a few years to come, you should start depositing some money for that in your savings account.
Start saving for your kids’ college tuition if you have any
Financial advisors recommend that you should begin saving as early as possible for kids’ college tuition fees after they are born. You can start by saving a small amount monthly and increase it with time as your income also rises.
Ensure you have a retirement plan already
Besides the retirement funds you receive from work or the government, ensure you make the maximum allowable contributions to your personal retirement account. You can acquire more information about these retirement funds that you can contribute to from a qualified financial advisor since various countries, banks and financial institutions offer various programs and schemes in regards to retirement funds.