If you feel like you’ve lost control of your retirement before you even started it, you are not alone. Here are 7 ways you can regain control of your retirement:
1. Have a plan. You need to know how much money you will need in retirement and then create a plan for saving or investing your way to that number.
2. Have a Plan B. Unfortunately, we are not always in control of our own destinies, especially when it comes to employment. You need to consider different potential scenarios and create alternate plans for those.
3. Know what you have. Make a comprehensive list of all your assets – savings, investments, property, etc. – so you have a baseline for planning.
4. Fully fund your retirement accounts. Contribute the maximum each year to your retirement accounts. If you’re over 50, take advantage of “catch-up” contributions that stretch the annual limits by $5,500 for 401(k)s and $1,000 for IRAs in 2014.
5. Take calculated risks. Being too cautious with investments after you retire could cost you.
6. Don’t forget the fees. Fees for managing your investments, including your 401(k), can take a chunk of change out of your nest egg over time. Be sure you scrutinize these fees – which administrators are now bound by law to provide to you – and make any necessary changes if you find they are out of line.
7. Don’t count on home equity. Although the housing marketing has improved significantly from the recession, financial experts caution homeowners against counting home equity into their net worth. Instead, they say it should be viewed as insurance to shore up any shortfalls in retirement income projections.
To take control of your retirement, and the financial future of your family, contact our Orange County law firm.
