Several decisions you make in your life significantly impact the future; one such decision is retirement planning. It involves having a financial plan to live comfortably after retirement. When you have a steady source of income, saving for the future is an essential aspect of your financial plan. You may not be too concerned about retirement planning when retirement life is years away.
However, the sooner you start, the easier it will be to save up. As per William Schantz, starting retirement planning early can help you reap the maximum benefits. In this blog post, we will cover the benefits of retirement planning. So, read on to find out!
Benefits of Retirement Planning by William Schantz
1. Financial Flexibility
The financial cushion afforded by early planning for retirement is a big plus. Once you decide when you want to retire and how much annual income you can manage, you will enjoy better financial freedom. Not only will you be able to save up accordingly, but your savings will also grow larger the earlier you start. This financial flexibility will save you from a very a lot of worries at a later stage, according to William Schantz.
2. Tax Benefits
Retirement planning has various tax advantages, including a reduction in the income taxes you have to pay after retirement. Moreover, it also ensures that beneficiaries of retirement have to pay a minimum tax amount.
Tax diversification is an essential aspect that many individuals ignore while preparing for retirement. It involves creating “streams” of money in tax-deferred, no-tax, or taxable accounts. These accounts allow you to withdraw income smartly from multiple sources based on the requirements.
3. Peace of Mind
As per William Schantz, peace of mind is perhaps the most significant advantage of retirement planning. This peace of mind is due to the freedom of knowing that you are covered in all aspects.
Once you plan well for your retirement, you will be free of a lot of worries regarding finances that arise in people’s lives once they set out to retire. Post-retirement is a new chapter in one’s life; the sooner you plan for it, the less stress you will have when it starts.
4. Cost Savings
As per William Schantz, there are numerous benefits of retirement planning, and one of the biggest is cost saving. There are many ways you can reduce the costs of multiple things if you start retirement planning early. For example, if you start early, you will be expected to pay a much lower premium on a retirement saving fund.
If you are planning to build your retirement estate, you are likely to save on a lot of development, building, and real estate ownership costs if you start early.
William Schantz’s Concluding Thoughts
Retirement is a beautiful opportunity to explore your passions and write a beautiful chapter. It doesn’t have to be the end of your career but the beginning of a journey in which you can pursue your interests, pursue your hobbies and live the best chapter of your life. If you want to do the above, then start planning early.