With the uncertainties surrounding social security, it’s time to start building a reserve to ensure peace of mind in the future.
How do you imagine yourself in old age? Counting every dollar of retirement to pay for the month’s expenses? Or having a comfortable and peaceful life, without major retirement worries? Of course, the second option is anyone’s choice – but to get there, you have to do some good planning. The sooner you start the better.
“Everyone is following the changes in social security and it is already known that it is not possible to depend only on the SSA. Most people are concerned about this issue, but the fact is that most of them don’t even know where to start saving for the future”, says retirement consultant John Labunski.
This reality is confirmed by the numbers: a World Bank survey carried out in 143 countries revealed that out of every one hundred Brazilians, only four save money for old age. It is the worst index in the Americas and the 12th worst in the world.
But it is possible to change this situation. All you need is to arm yourself with information, knowledge, planning and willpower to achieve your goals. Next, check out retirement advisor John Labunski. Tips for starting your retirement fund.
Organize your budget
Step zero for thinking about the future is getting your finances organized today. If you spend more than you earn and are in debt, you won’t be able to save for the future or take a long-term view.
So, first of all, take care of your cash flow – know how much comes in, how much goes out and think about how you can reduce costs.
If you find it difficult to do this yourself, having the guidance of a personal finance consultant can help a lot in this process. See five retirement habits that prevent you from saving!
Start soon
Of course, the sooner you start saving, the better. And the longer it takes, the greater the monthly effort to assemble your reservation.
So there’s nothing more to wait: understand that it’s always time to start saving. With effort and dedication you will reach your goals.
Search s
For most people who want to save money for retirement, private pension is the ideal option, because it has a higher return than savings and brings benefits in relation to Income Tax, as it is a long-term .
But remember: you have to research. Especially in banks, there are many pension plans available, but most of them are not good deals because of the high fees charged.
Look for one with good profitability, low administrative fees and no contribution fee. Another interesting option is to invest in Treasury Direct, which offers security and good income.
Establish how much money you want to have in the future
There is no exact rule or formula for this, because it all depends on your current standard of living and how you intend to live during retirement. But it is possible to make general estimates.
Do this exercise in imagining what the monthly costs of your old age will be and how long will you need that amount after you stop working – 10, 15, 20 years? Then you will arrive at the amount you need to save. Also check out ten habits that really work to save money.
Stand firm in your purpose | John Labunski Best Advice
It’s not easy. You will soon feel it. But saving is essential for the future. Think that if you don’t worry about tomorrow, you will most likely depend on the help of your children or family members to support yourself in the future – and it’s not nice to be a burden on anyone’s life, right?
So stick to the established strategy and prepare to reap the rewards of it in the future. Years from now, you’ll be grateful you made a smart choice.
Read also: Investing Tips for Beginners: Top 5 Tips