Before you get started on a retirement plan example, it helps to have a few goals in mind. It is important to start saving as early as possible because if you do not, you will miss out on a decade of financial independence. Your plan should be realistic and you should consider using mutual funds to invest in. Mutual funds are a good choice because they do not carry high risk and can give you a nice profit during market fluctuations.
One key part of retirement planning is protecting your assets. As we age, we often face more medical expenses. With the complexities of the Medicare system, many people supplement standard Medicare with a Medigap or an supplemental insurance policy. They may also want to consider long-term care insurance. Another option to consider is an annuity. These are similar to pensions but offer a variety of options and considerations. It is important to research the plan carefully and understand the risks.
This plan is similar to retirement plan #1, but the costs are higher. If you want to invest more money, you can choose to invest up to the amount of the match. Typically, a small business owner will not want to pay for plan management. However, you can choose to spread the risk across several funds, such as mutual funds and stocks. If you want to invest more, you can take a stock investing course to learn how to choose individual stocks.