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Retirement

Now that you have a family, there are so many things to think about. You want to make sure everyone is healthy, happy, and enjoying life.

Your thoughts of the future are focused on having enough money for braces and college educations. Parents tend to put their own needs on the back burner, but retirement planning is something you really need to start.

Parents now have a tougher time than previous generations. Gone are the days of guaranteed pensions and health insurance for life funded by employers. We need to take charge and fund our own retirements.

Try to get a clear picture of what you have already. Add up your savings from all your accounts. Track down any retirement accounts from old jobs and bank accounts you may have forgotten about because they had very little money in them when you moved. You may have more money sitting somewhere than you think.

Save as much as you possibly can now in a retirement fund. You’ll be amazed at how much interest makes your money grow. It is best to diversify the investments in your account. Spreading your money among different investments in a mutual fund is less risky.

There is a lot of guess work involved in planning for retirement, but you need to do the best you can to try and predict what you will need in the future. Here is where an expert or an online calculator can come in real handy.

Try to figure out how much of a nest egg you will need by anticipating your annual expenses during retirement. Subtract your expected social security, pension, and retirement accounts.

Multiply this number by 25. This will give you an idea of how much you will need. Following this method you will be able to spend 4% a year without running out of money.

That is just one method of calculating for retirement. There are so many variables that must be considered that using online calculators and experts bears repeating.

After you’ve figured how much you’ll need for everyday expenses, you’ll also want to consider the fact that you may need more money for medical bills. Today parents are far more active than ever before and they live longer, too.

Retirement is also a chance to do things you always wanted to do, but never had the time. You’ll spend less money on work related things like transportation and clothes, but more on travel and hobbies.

You might want to take a college course or have extra money to spend on the grandkids. Think about saving enough money to buy that motorcycle or RV so you can enjoy your retirement!

Making sure contents are well organized.