Planning Early for Retirement with Life Insurance and Savings Provides Big Benefits

You are young, just out of a college maybe a few years into your career and feeling like you have all the time in the world. Prepare for retirement? The reasons why you might feel that way are numerous. Maybe, you feel like you are just too young, or maybe you feel you can't afford life insurance or to save money every month . Common concerns and sentiments to be sure but the fact is, the earlier you start the easier planning for retirement  the easier and less stressful it will be.

If you have an employer sponsored  401k,that's a great place to start. A 401k with matching funds provided by your employer, even better! Another advantage that most  people who are just starting out have are low taxes. If you are just beginning your career and expect to climb tax brackets as time goes on, this is a great time to put some after-tax money into a Roth IRA. Money in a Roth grows tax-free and is typically not taxed when you take distributions. Pay taxes today for the right to avoid high, and potentially very high taxes in the future. If your employer has a Roth 401k, invest there. The plan is like any other Roth IRA save for the fact that contributions are withdrawn from your after-tax paycheck.

If you don't have a 401k through an employer but have money to invest (graduation gift, wedding present,inheritance, etc.) start with a Roth IRA through  respected brokerage or financial institution offering low-fee investments. If you are working as a freelancer or consultant, basically anything where you receive a 1099,looking into a self-employed IRA, which provides benefits where taxes are concerned.

Another key piece to the retirement puzzle is the right life insurance policy. As with the 401K ,IRA or saving in general,where life insurance is concerned, your youth is on your side. The earlier you get life insurance in place, the more comprehensive, and less expensive it will be.

Life insurance underwriters use a laundry list of criteria in the life insurance application process. Many of these factors include health and wellness issues. Simply stated the younger you are the less likely you are to suffer from  serious medical issues or have symptoms of serious issues such as high cholesterol, high blood pressure or even insulin resistance. Putting a policy in place while you are young ensures that you are more likely to get the coverage you want.

At the end of the day, no matter how old(or young) you are, if you aren't already saving and planning, now is the time to start! Time is indeed on your side, but you have to take advantage of it. Planning for the future now can save you a great deal of money and provide serious peace of mind.