One of Americans' top fears is to not have enough money when it comes time to retire. This is a very serious situation for most people. With recent downturns in the stock and bond markets, nest eggs are dwindling across the board. If you learn your lessons from these events, you will be able to prepare to have enough money when you retire.
Build up Reserves
Work on building up your retirement savings. If your employer offers a 401k plan with a match, you should contribute significant amounts of money to this account. Also be sure to contribute to IRA accounts. For most people a Roth 401k or Roth IRA will be preferable. Most importantly, remember that your retirement account should not be your only retirement plan! Keep going to improve your retirement savings prospects.
Grow your Passive Income
Develop several sources of passive income that will continue well into your retirement. These are important for two reasons: 1) they provide you with continuing income throughout retirement, regardless of stock market fluctuations, and 2) you have some control over the performance of these investments. Some examples of passive income are real estate properties, businesses, and even writing income-generating articles. You can be very creative when it comes to finding passive income sources. The sky is the limit for this.
Plan for Health Insurance Expenses
Health insurance expenses skyrocket once you hit typical retirement age. Plan for these increased costs as you grow older. You should also think about managed care. There is a high chance that you will need to have live-in care at some point. Plan for this expense in advance to avoid a surprise once it's too late.
Have a Great Attitude
If you have an optimistic attitude an plan well, you will have little to worry about in retirement. Focus on passive income and use your savings as a backup. If you play your cards right, you will have several sources of income to support you in your later years. The more sources of income, the lower the chances that you will run out of income in your golden years.