HOME BANKS CONTRIBUTE BLOG ABOUT CONTACT PRIVACY POLICY Home » Blog » Early Retirement » 10 Ways You Can Prepare for Retirement Early 10 WAYS YOU CAN PREPARE FOR RETIREMENT EARLY November 1, 2016 Cascade Bank 0 Blog, Early Retirement, Are you looking for ways to prepare for your retirement early? Follow these helpful tips to give your retirement plan a head start. Increase Your Savings 1. Learn to Become a Super Saver Once you’re done paying your monthly bills, these are the necessary amount you plan to save and place it in your retirement account. Consider these savings as a retirement investment. Send as much cash as you can that come from savings, tax refunds, raises, and bonuses into your account. Instead of purchasing a brand new TV or iPad while your previous one is still working well. 2. Pay Off Mortgage Eliminate the biggest portion of your monthly bills by paying off your home mortgage. Take the time to do so while you still have insurance and maintenance costs. Paying off your home will ultimately decrease once you own the house. This will also help save you money during retirement as you won’t need to make any more house payments. 3. Pay Off Debt Do you still have to make payments on your student or car loans? Or perhaps you rely on your high-interest credit card every month. Make this a priority to pay off before you reach retirement. This will reduce the expenses and save you more money in the long run. Pay off any debt you may have grown throughout the years. 4. Consider Downsizing Consider whether you and your family still need a large home with an even larger yard. Even the tiniest spaces can add up to your monthly bills. Moving to a smaller property will be easier to maintain and upkeep than a large home. While it is most likely difficult to leave your treasured home behind, downsizing to a significantly smaller home can reduce your costs for housing and provide some home equity so you can add towards your retirement. 5. Maximize Tax Breaks Most people over the age of 50 are often at the peak of their annual income earnings. This could mean that you also have a higher tax bracket than you will once you reach retirement. If you want to minimize your tax bill, take advantage of tax breaks including deductions for savings for health care accounts and retirement that you may be qualified. 6. Take Advantage of Contributions Once you hit the ripe age of 50, your 401 K contribution limit will increase from $6,000 – $24,000. This means that older will be able to contribute at least $1,000 more to IRA then individuals under 50. Take advantage of tax deductions. They can surely help save you thousands on your tax bill. 7. Avoid Potential Gaps in Health Care Coverage Health problems tend to increase after the age of 50. This means that most health care coverage plans also increase in payment. Keep in mind that you will not be qualified until the age of 65. Aside from keeping yourself healthy, make sure that you are properly insured for any unexpected and potential health issues. While getting sick is bad, paying for a large medical bill will play a toll on your retirement plan. 8. Prepare Social Security Plan Although you are not allowed to register for your Social Security plan until you reach the age of 62, it’s a good idea to prepare and start planning how and when you will claim your benefits before the time comes when you need it. When you sign up at age 62, this will result in a reduced benefit. However, delaying your benefit until age 70 will increase your monthly payments. Allow yourself room to strategize how you want to maximize your retirement payments. 9. Set Your Career Being laid off or losing your job can be truly heartbreaking. This is because many older workers tend to have trouble looking for another job and starting from scratch with the said pay they once received. Take measures to make your position much powerful and become indispensable to your company. Continue to stay up to date with the latest developments and current technology in your expert industry. 10. Prep Your Leave While not everyone chooses when to leave their job, reaches your early 50s is a great time to start preparing for retirement. This means it’s time to get motivated on how you can save more, how you will spend your time, and what can make your retirement plan go effortlessly. Follow these ten ways to prepare for retirement early, and you will be on your way to living a comfortable life when you retire. An infographic by: FrugalVagabond.com Share this: Click to share on Twitter (Opens in new window) Click to share on Facebook (Opens in new window) Click to share on Google+ (Opens in new window) Previous: 7 Things to Consider When Choosing a Student Bank Account Next: HOW TO GET A BANK LOAN FOR YOUR SUPPLEMENTS COMPANY? About The Author Cascade Bank Leave a Reply Your email address will not be published. Required fields are marked * Comment Name * Email * Website Notify me of follow-up comments by email. Notify me of new posts by email. Search for: SOCIAL MEDIA RECENT POST How To Intelligently Improve Your Credit Score With Smart Money Secret 5 Important Things to Keep in Mind Before Applying for a Loan HOW TO GET A BANK LOAN FOR YOUR SUPPLEMENTS COMPANY? 10 Ways You Can Prepare for Retirement Early 7 Things to Consider When Choosing a Student Bank Account SUBSCRIBE TO BLOG VIA EMAIL Enter your email address to subscribe to this blog and receive notifications of new posts by email. Join 1 other subscriber Email Address Cascade Bank is a monthly magazine founded in 1992 by entrepreneurs Lance Dansk and Josef Gianelli. Its mission is to help bankers, corporate leaders, investors and all readers understand the trends in banking, loans, mortgages and all finance-related issues. CALENDAR November 2021 M T W T F S S « May 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 2016 ALL RIGHTS RESERVED – WEBSITE BY CASCADEBANK.COM ABOUT | CONTACT | TERMS OF SERVICES | PRIVACY POLICY | DISCLAIMER