10 Things to Do Now So You Can Retire Comfortably Later

Life comes at you fast. Or at least so the announcer guy on the commercial tells us. And actually, he's absolutely right. Whether you're thinking about retirement in the next couple of decades or can't imagine actually being 60+, listen in: those golden years will be here before you know it and if you're smart, you'll be ready.

How, you might ask?

Here's 10 things you should be doing now so that you can make the most of those golden years... whenever they might arrive.

1. Open an IRA. If you haven't already done this... go, do it now. You can stow away as much as $4,000 a year in an IRA and assuming an 8% return on your money, you'll have a nice little nest egg when you walk out of that office door for the very last time.
2. Participate in your employer's 401(k). I can't count the number of people I've worked with over the years who say, "I just can't do it right now... I don't make enough as it is.". But because 401(k) plans are typically pre-tax, taking $50 out of every paycheck will only reduce your take home pay by about $39 (assuming a 25% tax bracket and a $50K annual salary. This is because the money is deducted before you are taxed so your taxable income is less. Pretty sweet, huh?
3. Pay down your debt. If How much will it cost you to live comfortably during your retirement? Analysts estimate that you'll need at least 70% of what you're making now for every year of retirement. In addition to socking away as much money as you can, start looking at ways to decrease your debt and lower your overall cost of living. The less you have to pay out, the easier it will be to make ends meet.
4. Plan now for income later. Assuming you're in good health, there's no reason that you can't continue working into your retirement years. No, I'm not suggesting you keep that same office job for another 10 or 15 years, but a part-time job is a great way to keep you active and add to your nest egg after you retire. So,using the premise that you won't have to work 9 to 5 anymore, what would you like to do? If you've always wanted to sell plant cuttings or teach horseback riding, now is the time to start that business up. By the time you're ready to retire from your day job, you'll have a nice side business going strong to carry you through those golden years.
5. Get healthy. You don't want to spend your retirement years sick and puny do you? Besides,medication is quite expensive and it would be a shame to spend your retirement savings on medical bills and prescriptions. Do what you can now to start improving your health. Stop smoking, begin a regular exercise program and teach yourself to eat a healthy and balanced diet. The better you take care of yourself now, the longer and happier your retirement years will be.
6. Simplify. Another way to reduce your cost of living during your retirement years is to simplify your life now. Start learning to live below your means and you won't even notice the adjustment when your income decreases at retirement.
7. Get organized. Find those life insurance policies, pull out all of your broker statements and get them organized so that you know exactly what you've got.
8. Buy disability insurance. There is a reasonable chance that you could become disabled during your lifetime. You don't want to spend your life's savings while you're down and out - that would leave nothing for retirement. Instead, invest in disability insurance while you're in your peak earning years so if something does happen, you and your savings will be well protected.

9. Invest in large-cap stocks. They're cheap and they're an excellent way to grow your portfolio.
10. Become financially fantastic. Don't wait until retirement to discover that your portfolio isn't what it should be. Learn the difference between stocks and bonds. Discover why a high-yield money market account can keep you "liquid" and still offer growth. Rebalance your retirement portfolio every year to make sure its diversified and giving you the most bang for your investing buck. Take the steps now to learn what you need to learn about your finances so that you're not horribly surprised when you get ready to enjoy the good life.