
How You Can Achieve Your Retirement Goals Early!

Every worker looks forward to the day they retire. We look forward to the day we no longer have to work in our 9 am to 6 pm jobs to sustain our living. We look forward to the day we can finally relax and enjoy life.
No matter how beautiful the idea of living the golden years of our retirement is, many retirees nowadays still struggle in meeting their retirement goals. Many of them might still be working even after they’ve hit the age of retirement. If you don’t want to continue working when you get old, the financial experts advise you to achieve these financial goals for your retirement early.
Planning For Retirement

According to a survey conducted by Gallup poll in 2017 around 74% of American adults say they plan to continue working past their retirement age, while 25% say they don’t think they will ever stop working.
To have a comfortable retirement, you need to start preparing a large nest egg to cover all expected and unexpected expenses that may happen when you retire. On top of the financial expert’s list are your healthcare expenses. Since you can only access Medicare when you reach the age of 65, you need to set aside some money in case you got sick or hospitalized.
You can avail this by getting an insurance or healthcare. Aside from that, you also need to set aside your emergency funds in case something unexpected happens so that you won’t be draining your savings. You also need to enter investments for your long-term financial goals, especially when you retire. The financial experts recommend you aim for these financial goals and make small sacrifices now to retire early.
Save at least 20% of Your Income To Build Your Retirement Funds.
The average 401(k) plan enables workers to contribute 6% of their income to their retirement funds. However, this is not enough if you want to retire early and have a decent amount in your retirement funds according to Vanguard’s 2017 report.
If you want to increase your savings, the financial experts recommend you set aside at least 20% of your income. If your employer also offers a matching 401(k) plan and other investment options, you should use this opportunity to maximize your contributions.

The financial experts believe anyone can save 20% of their income if they have the discipline and goal to save.
As of 2018, the contribution limit you can avail of is around $18,500 per year, $24,500 if you’re age older than 50. If your employer doesn’t offer a matching 401(k) plan, take advantage of the IRA account. The minimum contribution for IRA ranges from $5,500 per year, or around $6,500 if you’re older. Make sure to invest the leftover income you have into a taxable brokerage account. If you plan to retire before the age of 59, you might have to pay a
L 10% penalty in case you withdraw your funds on both IRA and 401(k) plans. However, having a taxable brokerage account can help bridge the gap so your retirement funds remain unscathed while avoiding having to pay for a penalty.
Balance Your Risk and Reward
While the safest route to ensure your savings to grow over time without taking maximum risks is to invest conservatively, you should realize that smaller risks will only lead you to smaller rewards. If you want to maximize your money’s growth, you need to start being more aggressive when it comes to investments.
The financial experts advise you to start investing in bonds, stocks, and mutual funds to maximize your investments. Although the financial experts advise you not to throw all your money mindlessly, you just need to be careful in making decisions to balance your risks and rewards.
They recommend you invest in blue-chip companies or in industries you believe will thrive in the next couple of years or have a solid market so that all your investments won’t be in vain. The higher your return is, the earlier you can retire.
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