Retirement and Estate Planning on a Budget
There is a misconception that if a family is living on a budget there no room for retirement and estate planning. Retirement and estate planning can be done, and should be done, no matter what your expenses look like. If you put it off for too long what will happen to you and your family if you have no fund when retirement comes, or if you die and have no estate trust? Here are some tips to get your affairs in order for the future.
Saving for Retirement
Since retirement seems so far away it is easy to overlook. More things need your money in the present, it seems, but it is very important to put at least a little aside every month to go toward retirement.
Plan to save a portion of your income. This can be easily done by having a portion of your paycheck direct deposited into a savings account with a good interest rate. Another way to rack up the funds is to start using coupons, cutting out eating out, and buying extras, and taking that money and investing it. You’ll be surprised how fast it can add up.
Starting a Will
Planning for retirement and your estate through a will or trust is an investment for your family’s future. It helps make sure that your financial goals are met after you die and works to tell those who are left what to do with your estate. Many times you can have these drawn up without a lawyer. Some will kits cost as little as $60.
There are many free tools on the internet to help with retirement and estate planning. For example, New York Life has an entire page on their website chock full of useful investment and retirement tools. The Vanguard Retirement Calculator helps you see if you are investing enough and helps you average your investment returns. AARP has a Retirement Roadmap Tool that helps determine how much your retirement dreams will cost in the real world. Principal Financial Group offers many different kinds of planning and investment calculators for planning for retirement. CNN Money.com offers an intensive calculator that covers investments, goals, income, savings, and portfolios. Russel.com offers retirement planning tools that show people how much they can save and invest their future by quitting bad habits like smoking.
As you can see there are many ways to plan for your retirement and estate without breaking your budget.