Paul Haarman

Paul Haarman believes after decades of long office commute, long working hours, and savings, you are planning to retire and enjoy the golden years of life. If your retirement is after 10 years, you have already thought of some retirement plans to ensure living a comfortable lifestyle without financial stress. Monitoring your income streams in advance and having proper retirement programs in place will let you make the necessary changes to live happily, worry-free.

According to an article published on, when you retire at 65, you need to buy medical insurance to pay for your illness. Here are three steps to prepare for your retirement:

1. Reap the maximum benefits of retirement programs

Always try to add more to your retirement programs such as 401(k) or IRAs up to the maximum limit permitted. Contribute as much as possible to become eligible for the utmost matching contribution that your company offers. When you are above 50 years, rules related to catch-up contributions help you to put aside a greater amount than the standard contribution.

When you are close to your retirement, consolidation of accounts may ease your investment management, offering a clear perspective of your entire retirement assets. You also need to assess some 401(k) plans you have with your previous employers. You need to research on 401(k) allotment options as well as other contributions while switching jobs.

2. Diversify your investments for growth

You may hesitate to invest in stocks, as they are risk-prone, but these investments may provide you with the growth when you are close to retirement. Then, you must consider stocks only when you know about it, else not.

You can maintain a perfect mix of bonds, stocks, mutual funds, as well as other assets that match your risk tolerance, liquidity requirements, and investment time prospect.

With a sound portfolio, you can fight the odds and create the kind of earning to help you cover all expenses and live comfortably. Consult with a professional to figure out whether your investments are in synchronization with your investment goals for retirement days.

3. Reduce your debts

Paul Haarman says try to speed up your mortgage payments to help you pay off your loan before retirement. You should make an effort to reduce or clear all loans that you may have. Minimize the use of your credit cards by making cash purchases for most of the items you buy.

When you limit your debts or pay off loans completely. You’ll be able to reduce your retirement income spent on paying interest on loans. Let us explain this point with the help of an example. For instance, when you shell out payments for credit card use that charges an interest of 15 percent, it is similar to earning 9.9 percent on an investment, which is rise-free.

The experts in the industry recommend limiting the use of credit cards when you have 10 years left for retirement. Use that money for smart investment instead.


It is essential to plan and set practical goals for your upcoming retirement. It is never too late. Start saving every month, contribute to retirement programs, and make smart investments.