Draft a Detailed Financial Plan

Every successful outcome relies on a good plan. It’s the same with retirement. If you want to live your golden years comfortably, you need to do some planning. Drew Parker knew he had to create a financial plan, so he went on to create The Complete Retirement Planner when he retired. The only regret is that he didn’t think of retirement planning earlier.

“When I was younger, I wish that I had known the full value of having a comprehensive financial plan,” he said. “I didn’t create one until I was actually ready to retire, but I wish I had created one decade before. To my younger self, I would say, ‘Create a financial plan as early in your career as possible so that you won’t have to guess and hope about what it will take to become financially secure.’”

See also 21 Ways to Get on Top of Your Retirement Now!

Your Action Plan

Don’t postpone creating a financial plan any longer. You can either enroll the help of a financial advisor or do it on your own. The idea is to consider your retirement needs, goals, your risk tolerance, your goal retirement age, and the lifestyle you want in retirement. Once you’ve determined your wants, you need to calculate how much you need to save to get to where you want based on your income from your investments, retirement savings, Social Security benefits, and other income sources. Fine-tune your plan whenever necessary.

One way to put money aside for retirement and let them work for you is by opening a high-dividend account such as PenFed’s Premium Online Savings Account. This option allows you to increase your savings with a 1.40% annual percentage yield (APY)1 on balances below $250,000.