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- It's safer to plan that inflation will be too high rather than too
low.
- Try living on the income you plan to receive during retirement. If
you are saving/investing up to 20 percent of your income, you are already
living at 80 percent.
- Live within or below your means. Scale back on your lifestyle now
to make adjustment easier later on. Make wise choices with your spending
in favor of financial priorities. Remember that all major purchases
made now will have retirement implications.
- Pay yourself first each payday. Set aside at least 5 percent, up
to 20 percent. If money can be saved through payroll deductions you
won't see it or spend it. Think of saving and investing as your number-one
financial obligation each month. How can you become financially secure
and independent if you don't pay yourself first?
- Start planning and preparing early. Most successful retirees had
plans in place by the time they reached 30.
- Save and invest wisely. You don't know how much your company pension
or Social Security will provide in the future, so your own savings and
investments will be very important.
- Explore career directions you can pursue later in life. Many people
have turned a hobby into a new career.
- Mentally prepare yourself for retirement. Assess your goals and values
and relate them to how you would like to live. Think about relocating
as you travel to different areas of the country.
- Carefully consider early retirement incentive plans if you don't
have substantial savings and investments to rely on. Always compare
the offer to what you could receive if you stayed until 62 or 65.
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