The fact that you enjoy economic stability at this moment does not mean that you will also have it when you retire. Therefore, beyond ensuring the necessary resources to cover your financial responsibilities today, you should start thinking about what your income will be when the retirement stage arrives.
Do not rest on the idea that the money you have accumulated through Social Security will be enough to ensure your future financial stability. When the time comes for retirement, the Social Security check will be just a supplement.
Remember that to maintain your lifestyle level when you retire, you will need to receive approximately 70 percent of the income you earned while working. To start, you need to define three things:
- How much money you will need when you retire?
- At what age you plan to retire?
- Which will be your income sources at that moment?
Once you have a clear picture, establish a savings plan for retirement, preferably when you enter the workforce, either as a salaried employee or on your own.
One of the alternatives for those who work on their own is the Keogh Retirement Plan. For example, if you contribute $15,000 annually to a Keogh Retirement Plan for 25 years, assuming an 8 percent interest yield, you will accumulate $1,199,316.
Some of the benefits of the plan are that you will receive tax relief for your contributions of up to 25 percent of net income after contributions, earnings generated over the years will not pay contributions until the time the money is withdraw and more.
Secure your retirement. Contact your financial advisor to get advice on the Keogh Retirement Plan. Select the options that will help you meet your financial goals.