According to investment adviser Greg O’Donnell, preretirees should be planning for their future retirement as if they were developing a road map. You need to figure out where you’re going, how to avoid wrong turns, and what costs you’ll have to endure. Having an effective strategy is paramount in retirement since the investments you make will determine your financial well-being for the rest of your life. A prime part of this strategy should be to maximize on tax-deferred plans such as a tax-deferred 401(k).
- With retirement looming on the horizon, you need to have a plan in place for your financial security.
- One of the smartest things you can do is maximize your IRA and 401(k) contributions to benefit from tax-deferred savings.
- Also, periodically review your investments to minimize your risk as you get older.
“It’s important to set goals and create a strategy for achieving them before and after you retire.”