How to plan ahead and reach your goal of a comfortable retirement

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Retirement is a topic that many people don’t think about when they’re working because it seems so far into the future. However, in reality, the best time to plan for retirement is when you’re younger. That’s when you can work on establishing investment and savings plans that can help you reach your retirement goals.

If you’re unsure of where to start, it can be helpful to talk to a financial advisor who can help you determine the right path to reach a comfortable retirement. Kimberly Weitzel is a financial advisor with Hawaii State Investment Services, CUSO Financial Services. She says that when planning for retirement, it’s important to start saving early.

“Many people feel that retirement is a ways off and that they’ll have plenty of time to save money later,” Weitzel explains. “But putting money away for retirement now gives your money more time to grow, which means more money saved up when you reach retirement age.”

Weitzel emphasizes that it’s also important to know your retirement goals so you can plan accordingly. If you want to retire early, or even if you want to travel more after retirement, that may require you to save more now so you have the finances to do those things down the road. She says it’s also important to consider how your expenses may increase or decrease in retirement.

One thing to find out as you plan for retirement? Whether your employer offers a retirement plan. If they do, consider participating in it. Usually you can designate a certain amount to go into the plan that your employer will deduct from your paycheck. Having the money deducted that way will keep you from being tempted to spend it.

Another option is to consider a Traditional IRA or Roth IRA, which are types of retirement arrangements that you can contribute to. Both have certain requirements in order to be able to contribute to them, so it’s best to talk to an expert if considering one of these types of accounts.

“Whatever options you consider, it’s most important to get in the habit of saving now,” Weitzel reiterates. “Even if it’s just a small amount from every paycheck, remember that those little amounts will add up to a lot of money over time.”

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