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Setting target dates are good ways to reach retirement goals 2010-05-26 Many older adults may be apprehensive about retiring, but setting target dates for reaching certain financial goals will put them in a better position to pay off debt and build a sizable retirement income, according to ABC News. For example, planning a date each year to increase their contribution to a retirement savings plan will give their savings a boost, the news station suggests. The date can be any day of the year and even a small increase of 1 percent will benefit retirees in the long run. Retirees should apply the same principle to paying off their mortgage by their retirement year. When homeowners sign up for a mortgage loan, they typically follow the payment schedule outlined by their lender. By calculating the monthly payments needed to bring their mortgage balance to $0 by their retirement age, retirees will have one less debt to worry about and more equity available to them, the news station recommends. Many retirees are concerned about outliving their savings, but strategic planning, budgeting and investment decisions can help them reduce costly debts and grow their retirement income. Retirees may benefit from consulting a financial planner regarding targeted financial dates and how to achieve their goals.  |
