Let’s face it.

In life, nothing is permanent. Things come and go. This is why it is important to put your best foot forward and have a detailed retirement plan.

Some wait too long before they start to plan for their future retirement. This could be a bad idea, partly because you never know what lies ahead and it is best to start planning as soon as possible. 

So, here’s a few quick tips on creating a sound retirement plan:

1. Decide your retirement year – first, decide on what year you would like to retire. It’s always best to keep an end goal in sight, even when you are just beginning. This will keep you focused and determined to push through.

2. Do your homework – the best way to start making your retirement plan is to consult your employer-sponsored 401(k) or IRA, and investigate the objective date of your mutual funds to see if it matches your target date of retirement. If it does, start funding immediately.

3. Have a Plan B – there are many instances where your plan can unintentionally backfire, or go wrong, so it is best to have backups. Do not depend entirely on your funds because there is a possibility that circumstances beyond your control will occur, and if this is the case you need to be prepared with backup sources.

4. Opt for annuities – When planning out your retirement, you should take note of different retirement planning strategies that have seen successful results when used by others. These have the potential to make your entire planning process easier and faster. One good example of a retirement planning strategy are annuities. In simple terms, annuities are adaptable indemnity bonds that are exclusively patterned to give additional wages at the same time. They can assist you in accomplishing your long-term saving goals. Annuities are long-term items recommended by most insurance companies, though, there are also brokers and other financial establishments that provide a similar service. They will help you set up a specific goal and guide you in the right steps to accomplishing it. There are two types of annuities: the immediate and the tax-deferred. In the immediate annuity, you start your retirement planning by giving a hefty amount of money to the insurance company, or any financial institution for that matter. After that your payment scheme will start at once. This type of annuity is usually best applicable to those who are already 60 years old and above. On the other hand, with tax-deferred annuities you may choose whether you will pay the retirement amount instantly or make a monthly disbursement until you reach your target date. This is usually best for those who choose to start their retirement planning early.

5. Modified Endowment Contracts (MEC) – annuities have been a popular retirement planning strategy for many years, as people keep choosing this option again and again. However, like most plans, it is still vulnerable to problems and unforeseen events. That’s why it’s best to still have an alternative option when making a retirement plan. The next best retirement planning strategy is the Modified Endowment Contract, or the MEC. This is simply another type of insurance policy. MEC is similar to annuity, especially the tax-deferred annuity, in that the preliminary premium rates are pretty similar throughout both. However, they differ in tax codes. In annuities, the tax code appears to be an unpleasant burden that weighs on the entire plan, especially if the benefactor dies while the annuity accumulation stage is still in full force. This, in turn, makes the deferred wage taxes become more payable. In contrast, the MEC resolves this problem by providing the benefactor with an insurance rider included in the agreement. The insurance rider is made to hand over the full amount to your recipients, free from any taxes. MECs can give you the freedom to choose between a variable or a fixed account. This, in turn, will make your retirement planning relatively easier.

Whatever retirement planning strategy you choose, the bottom line is that it is crucial to start saving for your retirement as soon as possible.

As they say, life is a game of suspense; you will never know what it can and will happen until it does. So, the best time to start retirement planning is now.