Equifax

Finance Blog

Five Goals for Obtaining the Ultimate Retirement Lifestyle

Written by Jeff Rose on January 23, 2013 in Retirement  |   No comments

As another new year begins, you likely have goals to better yourself and your family. In light of an unpredictable economy, however, you also should set retirement goals. While resources may occasionally be tight, there is no reason why you should be caught off guard…

retirement lifestyleAs another new year begins, you likely have goals to better yourself and your family. In light of an unpredictable economy, however, you also should set retirement goals. While resources may occasionally be tight, there is no reason why you should be caught off guard when it’s time to retire. Follow these five simple resolutions to improve your chances of obtaining the ultimate retirement lifestyle of which you have always dreamed.

1. Pay off debt
Before you can save money, you must first pay off debt. According to USA Today, the average credit card debt per borrower in the U.S. is aboutnearly $5,000. Perhaps your credit card debt is even higher—and you likely have other obligations on top of that, such as personal loans, medical bills, and mortgages. If you insist on only making minimum payments, you will ultimately waste money on interest. Instead, focus on paying down your balances so you don’t have to contend with debt after you retire.

2. Match your 401(k)
You’re lucky if your employer offers a 401(k) plan. You’re even luckier if your company matches your contributions. This is an opportunity to get “free” retirement funds, so take full advantage and always invest the maximum amount your employer will match. For example, if the company matches 2 percent, then make sure this percentage is deducted from every paycheck—this match will make a significant impact in the long run.

3. Roll over to Roth
Traditional IRAs are an alternative method of interest-accruing savings. If your IRA is relatively young, consider switching to a Roth IRA. With a Roth IRA, you pay taxes up front, before the account accrues any interest. While you might spend more in the short term, you will actually save money on taxes when it comes time to cash out the account. This will reduce the chances of having to give up a dream trip or failing to meet another retirement goal because you’re stuck paying taxes.

4. Watch for fees
Among the numerous moneymaking retirement opportunities also lie the many ways companies can charge you fees. Unfortunately, many of these fees are charged after you retire and try to cash out your accounts. Getting a Roth IRA is just one of the many ways to avoid fees. Always check with your accountant to make sure any fees are paid up front so you don’t encounter any surprises.

5. Know when to retire
Saving for retirement is just a part of the battle in achieving the best lifestyle possible. As a final resolution, you should seriously consider the best time to retire. If you have an IRA or a 401(k), you can start cashing out the funds without penalty when you turn 59 ½. At the same time, you won’t qualify for full Social Security benefits until you reach at least 65. Depending on your financial situation, it may be worth waiting to retire for a few extra years until you can maximize your savings.

Jeff Rose is a certified financial planner and author of the blogs Good Financial Cents and LifeInsurancebyJeff.com. Learn more about his Debt Movement, where he’s inspiring people to pay off $10,000,000 of debt in 90 days. 

No comments yet


Leave a Comment


Name :


Commenting guidelines

We welcome your interest and participation on this forum, but be aware that comments will be published at Equifax's sole discretion. Please don't use this blog to submit questions or concerns about your Equifax credit report or raise customer service issues. Instead, you should contact Equifax directly for all such matters and any attempts to do so in this forum will be promptly re-directed.

Some other factors to consider when commenting:
  1. Registration and privacy. While no registration is required to visit our forum, participants wishing to post a message must register by creating an account. All personal information provided by forum members incident to registration is governed by our Terms of Use and Privacy Policy.
  2. All comments are anonymous. We'll delete your name, e-mail address, and any other identifying information, including details about your investments.
  3. We can't post or respond to every comment - As much as we'd like to, we can't post every comment, nor can we guarantee that we will respond to each individual message. All questions or comments about your Equifax credit report or similar customer service issues should be handled by contacting Equifax directly.
  4. Don't offer specific legal, tax or financial advice. All of the materials on this Site are for information, education, and noncommercial purposes only and this forum is not intended as a means of expressing views or ideas regarding any specific legal, tax, or investment advice. While offering general rules of thumb is both permitted and encouraged, recommending specific ideas or strategies regarding investments, taxes, and related matters is prohibited.
  5. Credit Repair. This blog is not intended as a venue for the discussion or exchange of ideas regarding credit repair or other strategies intended to assist visitors and community members improve or otherwise modify their credit histories, ratings or scores.
  6. Stay on topic. Your comment should be concise and pertain to the specific post in question.
  7. Be respectful of the community. The use of profanity, offensive language, spam, and personal attacks will not be tolerated and egregious or repeat offenders will be banned from future participation. We encourage disagreement and healthy debate, but please refrain from personal attacks on our WordPresss and contributors.
  8. Finally: Participation in this forum may be terminated by Equifax immediately and without notice for failure to comply with any guidelines or Terms of Use. As such, you should familiarize yourself with all pertinent requirements prior to submitting any response through the blog or otherwise. All opinions expressed in this forum are solely those of the individual submitting the comment, and don't necessarily represent the views of Equifax or its management.

Equifax maintains this interactive forum for education and information purposes in order to allow individuals to share their relevant knowledge and opinions with other members and visitors. We encourage you to participate in discussions about personal finance issues and other topics of interest to this community, but please read our commenting guidelines first. Equifax reserves the right to monitor postings to the forum and comments will be published at our discretion. Do you have questions or comments about your Equifax credit report or customer-service issues regarding an Equifax product? If so, please contact Equifax directly. All opinions and information expressed or shared in blog comments are solely those of the person submitting the comments, and don't necessarily represent the views of Equifax or its management.


Retirement Archive

Stay Informed Sign up for our FREE Equifax email Newsletter