How to Prepare Ten Years Before Retirement
- 1). Make a call to the Social Security Administration and ask for a free statement. The number is 1-800-772-1213. You can also go online to www.socialsecurity.gov to find out about your benefits and what you will be eligible to receive when you retire in ten years. Ask to set up an appointment with a local representative to better understand the information.
- 2). Investigate pension plans your current employer offers. Research or ask questions regarding what happens to that plan if you retire early or even get laid off or change jobs. You can also find out what type of benefits you will receive in ten years from your spouse's pension plan.
- 3). Open up an IRA (Individual Retirement Account). Contribute up to $4000 a year into this type of account while you gain tax rewards. Choose to open either a traditional IRA or a Roth IRA. Depending on the option you select, the taxes will vary. Find out the details on both and choose the one that works best for you.
- 4). Contribute as much as you can to a 401K plan from your employer. Depending on the employer, the company may match the amount you place into the account every paycheck or even monthly. Find out ahead of time about fees if you decide to withdraw money from the account before retiring.
- 5). Open up a savings account and do not take any money out for ten years. Placing just $100 a month into this account will quickly add up, and interest will accrue in your favor. If you have extra money at the end of the month, place it into the savings account and watch it grow over the years.
- 6). Set up meetings with lawyers, financial planners and even accountants that you may know and trust. Ask questions about retirement and how you can increase the amount of your retirement fund in the next ten years. Be sure they understand your wish to prepare accordingly. Listen to their advice. Get second opinions if need be.
- 7). Consider downsizing. Whether it is selling a large home and moving into a smaller one, or even selling a vacation home that is rarely used, downsize to save more money. These extra savings can also be applied to any type of savings plan to better prepare for living expenses in retirement.
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