Retirement Planning By Age

Yahoo! Finance had an excellent article by Bankrate.com titled Life Stages Interactive , which shares retirement planning and considerations for different age groups. I like this article, because retirement planning and saving does different by age group and also depends how much has been done at earlier ages.

The age groups covered are: 20-40, 40-55, 55-65, and 65+. Here are some of the key points.

Early Career: 20-40

Start saving young and let compounding work.

Use tax advantaged (401Ks and IRAs) and taxable saving options.

Diversify investments

Mid Career: 40-55

Evaluate one's life, career and saving situation. Make adjustments

Eliminating debt is a priority.

Hire a financial planner.

Save for retirement over college if a choice needs to be made.

Late Career: 55-65

Decide when to retire.

Estimate retirement income and possible sources

Review health care coverage and insurance needs.

Post Career: 65+

Manage income sources and investments.

Whatever one's age, the article, Life Stages Interactive, will have a few good tips to consider. Also, if one plans to retire earlier than 65, simply shift the age range earlier by an appropriate amount.

For more on Reaping the Rewards, check back every Friday for a new segment.

Photo Credit: morgueFile.com, Emily Roesly

This is not financial or retirement advice. Please consult a professional advisor.

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