Many people don't start to think about retirement until they reach their 60's. That is really too late. Certainly, once the kids are gone at about 50 years old or sooner, if you have kids, it is time to start planning for retirement. Even before then if your employer offers a 401K savings plan with or without an employer contribution, it makes sense to put money away for retirement. This money goes in tax free and will only be taxed later when accessed without penalty after someone is 59 1/2. Roth IRA's for those who qualify are good too. Those are funded after tax, but then grow and come out tax free. Most important, don't have too many eggs in one basket because what goes up will come down.
But planning for retirement goes beyond financial planning. It also includes longer term living plans. Where do you want to live in retirement. Some people living in cold places decide to move to warm places, which is why states like Arizona, Florida, Nevada, Texas and the Carolinas are popular aside from better states from a tax standpoint than many other states.
And, then there is housing. By the times the kids are gone maybe it makes sense to downsize. Why have the expense of a big home when a smaller home could do just fine. Part of planning for retirement is simplifying life. Having less home to take care of is a good thing.
At Paragon Home Resources, we assist our clients with life decisions at all stages of life. We work with clients to sell and buy homes all over the country. We know that talking through the issues people face is a way to help sort life's decisions.
