When an individual is trying to figure out their retirement planning, it can be a good idea to determine how to manage multiple accounts and investments. This doesn’t have to be difficult as long as the person has the right financial strategy set up in advance.
It is possible, and common, to take on the plan offered by an employer and avoid doing any other investing for retirement, but some go beyond this singular method, according to The Wall Street Journal. There are those that not only take advantage of their employer’s retirement plan, they also have external retirement accounts.
Getting a handle on investing across multiple accounts is necessary for success, The Wall Street Journal article noted. It is important to invest in all of them with a plan in place that ensures each account receives a certain amount of funds.
One factor that investors should consider is how much they should put into an employer-sponsored retirement account based on the matching funds from the employer, the news source explained. This is important, as increasing the level of investment will, essentially, give them free money, and it needs to be factored into the overall strategy.
Younger people put off retirement plans
While planning for retirement early on is important, many young people are not be taking advantage of the options available to them.
A report from MainStreet.com and GfK noted that more than two-thirds of young workers are not saving anything for retirement. Despite this, close to the same level think they will still be able to retire by the time they turn 65 years of age.
Another issues is the 50 percent of these workers who think that Social Security may be able to be a considerable income option for their retirement, the report added. In reality, this may not be the case.
“As long as they are eligible, many Americans equate the date they retire with the date they file for Social Security,” said Bill Meyer, co-founder Social Security Solutions. “Instead, retirees should separate those decisions and look at Social Security as if it’s another asset in their portfolio.”