Consider a hypothetical person who is 51 years old and he along with his wife does not have any retirement plan to save for themselves after he retires. Their son has completed his college, and now they have diverted their focus on their own financial future. The husband and wife do not own a retirement plan of their own. However, they have three life insurance policies which are worth $60,000 approximately, and they can benefit from it widely. Now the question that arises is whether they should remove a part of that cash or all of it significantly to buy into ROTH IRA? What should be the right procedure to start saving for after retirement period?

The good part in the above situation is that their son has completed his college. The scenario above does not provide a lot of information on the people or their situation, but to start off their retirement plan and take the very first step, these three points can be of great help. Before we get down to those 3 points, it is essential to have a retirement plan for the future if you are uncertain of it.

1. First, you need to establish and plan the amount of income that you must have in retirement. It is essential that you know. You can set up the right amount by a certain fraction of the entire budget that you have set. Doing this will lead you to the solutions of four problems:
   1.  How much amount you need to accumulate?
   2.  The rate at which you need to withdraw
   3.  When and
   4.  How long it will live?
2.  You need to be clear on your budget, the limitations that are set and what other goals do you require to be fulfilled. The set budget will help you in maintaining and stabilizing your lifestyle. It will allow you to cast protection in case of an unexpected event or an incident. You need to consider if you have reliable or essential protection in case of premature death, any physical disability or extreme medical expenses. You must also consider if you have an emergency fund. Also keep in mind the other activities that might require saving like, traveling or buying another house or any other property.
3. After retirement plan, you must consider where to fund for you so that it is efficient and offers you back what you expect. You need to see if you have an employer plan and if they match a percentage. This not only an efficient method but is also way faster to give a boost to the retirement savings. If you are going for mutual funds, even there are also various options to consider. Analyze the pros and cons of each of them and choose wisely.

To get what you need out of this deal, you might even consider working with a financial advisor. We wish you flourishing investments!