Top 5 Keys to Retirement Planning and FREE Retirement Calculators!

Do you know how much money you will need in retirement? Like many concerned Americans, you may have no idea. Here are a few pointers to get you on the right track.

POINT 1:The BEST planning strategy for retirement funds is to start EARLY. It is never too early to start investing for retirement. You should really think about that. If you have the money to INVEST young and you do, there is a great chance that you will be able to RETIRE young. Even a couple of years can make the difference of several hundred thousand dollars once you factor in interest. You should set a goal of setting aside a certain amount of money every month from your paycheck to put into your 401k. Although with the economy right now, it might seem difficult. Try to cut back on some luxury items you could do without. Eat out less, skip that trip to your favorite place for a cup of joe. If you really take it seriously, you can do it!

POINT 2:Choosing the appropriate individual retirement accounts. At a time when the economy is unstable, this is important. Most of the experts agree that the Roth individual retirement accounts are the best alternative to traditional individual retirement accounts since not everyone can qualify for the others and is geared towards those who have a lower tax bracket upon retiring. A Roth individual retirement account is based on contributions made after taxes and the taxes are not deductible. Traditional individual retirement accounts, on the other hand, are based on a tax deduction first and then the tax-deferred funds begin to grow. The difference between this and the Roth IRA is that if your salary increases.....more taxes to pay.

POINT 3: Retirement Planning Calculators are an essential tool. A common mistake among pre-retiree's is that they think that they won't need as much money to live on once they retire. WRONG! Unfortunately,the cost to live does not decrease once you are retired. This is when Retirement Planning calculators come into play. These FREE calculators help you to know where you are now and what you will need to save to meet all of your needs once retired. It is not exact, but it definitely helps you to see what you need to have your dream Retiree lifestyle.

POINT 4: Have a plan for the allocation of your portfolio assets. A weak portfolio limits what you can pass onto your family. You may have to make withdrawals at a percentage rate that is higher than your portfolio is earning. You want to make your assets last as long as you do, or longer. In the event that your retirement income won't cover your post retirement expenses, the earnings from your portfolio will be the difference.

POINT 5: Get help from a reputable Retirement Planning service.The best way to look for retirement planning services is to ask your friends, family and coworkers if they can recommend anyone. Here you can learn the good and bad of many different companies, With none of the headache involved in finding out for yourself. Online retirement planning services are becoming more and more popular, with most national banks and financial services offering information and tools online. You can also check with your place of employment. Many companies are offering lists of recommended planning services. Finding the right retirement planning service is an important part of making sure you have the retirement that YOU deserve.