Retirement Planning Tips That Apply At Any Age

Retirement planning is often discussed in terms of age-specific tips and tricks. For instance, if you are in your 20s, you're probably used to being told you can take more risks with your investments right now. If you're in your 50s, you might be used to being told you should take less risk. These tips are certainly helpful, but not all retirement advice needs to be age-specific. The following tips and guidelines ring true whether you're just starting to save at 22, or finishing your contributions at 62.

1. Always max out contributions to any account your employer matches.

If your employer matches your contributions to your 401k or similar retirement account, that should always be the first account you contribute to. And you should always aim to invest as much as you can, up to the cap on matched contributions. For instance, if your employer matches 401k contributions up to 5% of your salary, you should contribute 5% of your salary, at minimum, to that account. If you don't, you're basically leaving money on the table! Don't contribute to other accounts, such as Roth IRAs, until you've maxed out your contributions to a matched account.

2. Account for inflation.

When calculating how much you will need in retirement and how much you will need to contribute to your accounts in order to get there, don't forget to account for inflation. Historically, inflation hovers around 2% per year. If you think you could live on $50,000 a year now, you'll need more than that per year by the time you retire, thanks to inflation. 

3. Speak to a professional.

There is so much retirement advice on the Internet, and you can absolutely learn a lot by reading articles from reputable sources. However, it's still a good idea to meet with a professional financial advisor about once a year. They can review your retirement plans and contributions and make sure you're making decisions that are good for your situation. This meeting may look a little different when you're 25 versus 55, but it is just as important. The sooner you start asking for professional advice, the better. You don't want to find out you've been doing the wrong thing for 40 years.

Everyone needs to plan for retirement in order to live comfortably and responsibly in their later years. Talk to a financial advisor for advice on your retirement planning today.