Retirement Planning: 5 painless ways to get you on course and ready to roll.

Retirement is your journey, your future and – hopefully – a nice chunk of your life. So let us help you get to where you want to go and join the dialogue on retirement planning.

Tip #1 – Figure out how much you should be saving. 

Not an easy question for sure, but one you need to think about – especially since everyone’s idea of retirement is a little different. Do you want to live on a faraway island? RV around the country? All of the above? Or maybe take on a more modest retirement. Only with a goal in mind can you know how much to save for your days of leisure.

Then, check out Retire MyWay. In 5 minutes or so, you’ll have a pretty good idea of how much you should be saving each month, based in part on what you’re saving already and how conservative or aggressive you might be with your investments.

But you’re the one who knows where you want to be come retirement day. Tell us all about your goals. And how you plan to seize the day.

Tip # 2 – Get the most out of your employer’s retirement plan.

Are you contributing to your retirement plan at work? If you can, you should be. By participating in your employer’s retirement plan, you’re putting pre-tax dollars away before they ever hit your bank account. It’s one of the easiest ways to save for retirement. And as a bonus, most employers match at least some of your contributions. That’s free money! Not sure if you have this option at work? Ask human resources or your boss. If you do, make sure at the very least that you are taking full advantage of the match.

So, tell us. Do you have a retirement plan at work and if so, how much are you contributing and how much is the job matching? If you don’t have a retirement plan at work, you’re not sunk yet.

Tip # 3 – Find the IRA that’s right for you.

That’s I-R-A, as in “I wanna Retire Already.” Or “Individual Retirement Account” as it’s more commonly known. Either way, IRAs should be at the center of your retirement plan. They’re a great gift from Uncle Sam – an account where your savings can grow tax-deferred or tax-free.

There are two main types of IRAs: Traditional and Roth. The two differ primarily by when contributions are taxed. Traditional IRA contributions may be tax deductible, grow tax free and are not taxed until you withdraw the money in retirement. Roth IRA contributions are taxed before they go into an IRA, but then can be withdrawn tax-free when you retire. What’s the catch? Roth IRAs have income limits – so not everyone will qualify.

Still want more details? Compare the two and find out which one works better for you. Already know a thing or two about IRAs? Tell us which type is working best for you and whether or not it’s putting you on the inside track to reaching your retirement goals.

Tip #4 – 3 words: allocation, allocation, allocation.

OK, so you know how much to save, and you know what accounts to put it in. The next thing to think about? Asset allocation.

Sound complicated? Don’t worry. We just want to make sure you put your retirement assets into the right types of investments and savings vehicles, given your personal situation. If retirement is a long way off and you can stomach the ups and downs of the market, then you might be better suited with a larger percentage in equities. If you’re getting closer to retirement and want to avoid market swings, then bond funds or CDs might make more sense. Totally lost? Check out our Retire MyWay, an easy planning tool that will help you with asset allocation.

In the end, it’s a personal choice, but an important one. In fact, it can be just as important as putting money away in the first place. So don’t procrastinate, allocate! And as always, we want to hear from you about all things investments, asset allocations and the like. Are they playing a big role in getting you ready for the big “R” day?

Tip #5 – Remember to check in.

National Save for Retirement Week is coming to an end (awwwww). Fret not. Hopefully, you now feel a little more aware and in control of your retirement planning. Before we let you go, we have one last topic to cover. We call it “checking in.”

What, you thought you were done? Well, for now you are. But as a rule of thumb, it’s good to revisit your retirement situation about once a year – often enough to get back on course if your circumstances change, but not so frequently that you’re reacting to the economic crisis du jour.

Sound like a pain? One way to make “checking in” easier is to consolidate your financial life. Get your money out of those 401(k)’s from 3 jobs ago and roll them into your IRA. With all of your assets in one place, it’s easier to see where you stand, how you’re invested and if it’s time to make some adjustments.

Get planning! And keep us informed on how it’s going.

Resource: http://wethesavers.com