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Funding your retirement

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.

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