Month: July 2022

Build Retirement Wealth: 7 Steps of Retirement Planning

Retirement planning is a process that involves multiple steps, each evolving as you grow
closer to your retirement. If you want to have a comfortable, fun, and financially secure
retirement, you need to start planning it now. Here are seven steps you should take, no
matter your age, to build a solid retirement plan.

This is a guest post. Rick Pendykoski is the owner of Self Directed Retirement Plans LLC, a retirement
planning firm based in Goodyear, AZ. See the Author Bio below the article.

7 Steps to Building Retirement Wealth

Reaching your retirement goals might take longer or sooner depending on your income and
the challenges you face throughout your life. But you’ll get there if you take these seven
things to build retirement wealth. So, here they are:

1. Invest in Your Health

With age, your medical costs increase as you become vulnerable to many lifestyle diseases
and chronic illnesses, including high blood pressure, arthritis, high cholesterol, and heart
diseases. Although some health conditions are inherent and beyond our control, there are
others that can be controlled and treated through regular screenings, proper medical care,
and a healthy lifestyle. Investing in living a healthy life is always better than spending a
fortune on medical treatments.

2. Create a Budget

Most people who retire as millionaires create a budget and stick to it. There is no magic pill
that can make you a millionaire overnight. If you want to build wealth, you have to plan for
it, and creating a budget is the foundation of any money-saving plan. So, sit down every
month to create a budget and allocate funds for each of your expenses, investments,
savings, and financial goals.

3. Save for Retirement

Once you have set aside money for retirement, it’s time to invest in retirement accounts like
self-directed IRA and a self-directed 401(k). These accounts help you live an independent
retired life and also cover emergency costs during retirement.

4. Maximize Your Social Security

Most people live past their “break-even point.” This can be concerning because the longer
you live, the greater are the chances of you running out of your savings in retirement.
However, you can make your money last longer if you decide to delay taking your Social
Security benefit as long as possible. So, when you run out of your savings, you can then
depend on your Social Security checks to serve your longevity.

5. Increase Your Income

Consider having multiple income streams to build your wealth. Some of the ways to increase
your income include: venturing into business, taking up a part-time job, running a side
hustle, etc.

6. Consult a Tax Expert for Advice

If you have been a good saver, you might be thrown into a higher tax bracket in retirement.
A higher income in retirement can also have tax implications on your Social Security benefits
and increase your Medicare premiums. The math involved can be complicated and intense.
So the best way to reduce your tax burden in retirement is to consult a financial expert.

7. Keep Your Debt in Control

The only good debt you can have is no debt at all. When you spend your income and savings
on loan payments, you’ll have less money at your disposal to save and invest.
So, it’s important to manage debt and use proven strategies like the snowball method and
the avalanche method to get rid of debt. Most importantly, after you get out of debt, make
sure that you work doubly hard to stay out of debt.
Sooner or later, retirement is coming. Being financially prepared for it is the best way to
ensure a comfortable, fun, and secure retirement. Start your journey with the above
retirement wealth-building steps. With dedication and discipline, you will be able to see
your wealth grow faster than you had imagined.

Author Bio:

Rick Pendykoski is the owner of Self Directed Retirement Plans LLC, a retirement
planning firm based in Goodyear, AZ. He regularly writes for his own blog of Self Directed
Retirement Plans and as a guest blogger to many sites in the niche of finance.

If you need help and guidance with traditional or alternative investments, email him
at rick@sdretirementplans.com or visit www.sdretirementplans.com.

Disclaimer
You are responsible for your own investment and financial decisions. This article is not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.