You work hard your entire life so that one day you can retire to paradise. Thousands of retirees have found their own little slice of paradise in a booming retirement town called The Villages® in Central Florida. This is a unique place close to beaches and theme parks, filled with wonderful amenities, nightly dancing, entertainment, and golf courses. Most people trade in their second car for a golf cart for easy transportation in this happy and sun-filled oasis.
Homes in this area range from $300,000 for a small vila to homes that near the million-dollar mark. There is a home for every budget and every kind of lifestyle. Being able to afford this lifestyle can be a challenge but can be obtained with proper financial planning.
In this day and age, saving for retirement seems harder and harder and is increasingly becoming a goal put on the back burner for many Americans. With lower wages and higher housing cost, much of the middle class are struggling to get by. Even with these obstacles in life, there are still ways to save for a prosperous retirement.
So how can you afford to move to The Villages®? Here are a few tips to help you get there:
Start today. Many people make the mistake of thinking it's either too early or too late to start saving for retirement. The truth is you can start saving at any time, of course, the earlier you start, the more money you will have when the time comes. Compounding interest is a beautiful thing. On the other hand, it is better late than never because even later in life, those savings will add up.
Put into your 401K. If you are lucky enough to work for an employer who offers a 401K, do it! The money you invest is pre-taxed so that you won't feel it in your pocketbook as much. If your employer matches it, make sure to contribute and take full advantage of the money they are just handing you. Even if you leave your job, your 401K is yours to take with you to invest how you please.
Open an IRA. An individual retirement account (IRA) will help you build a stack of cash later in life. There are two different options when it comes to IRAs. If you and your spouse have a retirement plan through your employment, a Traditional IRA may be right for you. The contributions would be tax-deductible, and your earning will have a chance to grow tax-deferred until your retirement. A Roth IRA would be a choice if you can meet specific income requirements. When you turn 59 and a half, you would be able to make qualified withdrawals that are federal tax-free as long as you have had the account for at least five years.
Play catch up. If you started funding for retirement early and then turn 50, you can contribute to your IRAs and 401K beyond what you were typically allowed. This means you can put more into it to make up for lost times when you weren't able to pay into retirement the way you had wanted.
Set Goals. By setting goals for your retirement, you have something to look forward to but you also have an idea of how much to save along the way. Setting benchmarks over the years will give you the satisfaction that you are meeting your retirement goals.
There are many ways to save for retirement, and knowing the ins and outs can be tricky. If you are dreaming of retiring to The Villages®, we can help you make it happen! Contact West Financial Group to help guide you to a path to success for retirement.