Again, not a sexy topic but a necessary one. I’m not going to start passing out fancy advice because there are more qualified people to do so. I strongly recommend that in terms of planning your retirement, you consult a professional financial adviser (one that you pay, not one that gets paid by financial companies to sell you their products).
However, should you want to get a running start before you consult a professional:
- Max out your contributions to your employer’s retirement plan.
- Max out your contributions to a personal retirement account.
- If you have a significant other, make sure they’re maxing out their retirement plan contributions.
- If you have children, fund your retirement before you fund their university. You do not want to be a burden to them later on.
- Pay off your house before you retire.
- Determine how much you’ll need for retirement – will your current retirement investments suffice?
- Know your level of risk and stick to it.
- Put additional money into long-term investments.
- Stay on top of your investments. Do not simply “forget” about them.
Again, I strongly recommend using a professional (and shop around until you find one that you like). Retirement planning is time sensitive – the money you put in early will be worth more than the money you put in later. A good professional will more than earn his/her fee.