5 Simple Ways To Plan For Retirement (That Cost $0 )

Are you avoiding making a plan for retirement? If you are, it could be for a lot of reasons.

Maybe you feel like planning for retirement is just SO far away that it doesn’t make a difference to you now. Or maybe you love what you do and you feel like you’ll never stop working anyway, so why bother?

Then again, you might feel like you simply have no idea where to start with investments, IRAs, and #allthethings. So you just don’t start at all, and hope that somehow things will work out in the future. Or maybe you feel like you’ve already lost enough time in planning for retirement and you’re too old to get started, so what’s the point?

BUT, there also might be another reason why you don’t want to think about retirement plans. The very idea of retirement might freak you out because you might believe that you just can’t afford it right now. After all, doesn’t it take a lot out of your bank account NOW to start planning for the future?

If this one resonates the most, I have some good news for you. No matter what your age or situation, you can start planning for retirement today. Even better, it’ll cost you exactly ZERO dollars to do it. (Yes, really!)

Read on and I’ll share my top 5 ways to plan for retirement without spending a single dollar.

1-Determine your Retirement Style

Just like anything else in life, we all want different things. So what retirement means to you might be completely different than what it means to anyone else. That’s the beauty of it–you get to decide what it means to you!

The first step is to determine what I like to call your Retirement Style. It’s basically another way of deciding what you want your retirement to be.

I’ve got a few retirement style categories that I’ve used to help my clients determine their retirement style. And figuring that out has been eye-opening and inspiring to them all! So here, I’ll share a few options so you can start deciding what style of retirement suits you the most.

Here are some possible retirement styles that might appeal to you...

• Luxury
• Frugal
• Active
• Adventurous
• Romantic
• Community
• Passionate
• Family
• Peaceful
• Solo
• Traveler

Which one resonates with you the most?

Do you see yourself retiring in a luxurious place, or are you more the type to hit the road in an RV? Are you interested in spending time with family, or do you want to pursue the passions that you never had time for in the past?

The cool part is that it’s entirely up to you. And once you decide what you want, you can start setting intentions and making plans to make it happen!

So, here’s what you need to do right now. Grab a pen and jot down which style(s) of retirement appeal to you them most. THEN, write down THREE ways that you want to spend your retirement.

Now is the time to create your vision, and the best part is that this doesn’t cost a thing!

2- Heal Your Money Blocks (Including the ones around creating a plan for retirement)

No matter who you are or what we’re talking about, money blocks are a thing for everyone. Here we’re going to focus on the kind of negative thoughts you might be having about money and retirement in particular. Then we’ll replace those old thoughts with NEW ones that will inspire you to plan for retirement with gusto!

Let’s start with the common excuses for avoiding a plan for retirement. See if any of these sound familiar…

• I fear that I won’t even live long enough to see retirement anyway, so what’s the point?
• I’m broke and living paycheck to paycheck right now. I need the money NOW, not later.
• It’s too late to start planning and I’m too old. I can’t possibly catch up now!
• Build up my savings account by setting up auto-deposits. 
• But I’m never going to retire anyway. I can’t see myself NOT working. Work is my passion. Retirement doesn’t even apply to me.
• My husband/wife/partner ‘takes care of all that,” so I don’t think about retirement at all.
• I know nothing about retirement and don’t know where to begin.
• It’s just too depressing to think about.
• I don’t have enough money to get started, so what’s the point?

Now, how do you get past these negative thoughts? One of my favorite ways is to write a letter to myself from my future self.

That is, write a letter from your retired self to your current self. In it thank, your current self for overcoming your fears and taking the steps to start planning for your future. Tell your current self about the life you are able to live because of the steps that you took today. Get as detailed as you can, and feel into it. Acknowledge to your current self that making the shift in mindset and taking action wasn’t easy. Make sure to give yourself credit for it!

THEN, once that letter is written, look at those old fears and money blocks listed above, and create a NEW affirmation about retirement.

Here are a few positive shift examples to help you shift your thoughts…

• In my retirement, I will leave a positive legacy for the world for years to come
• Because I am an empowered individual, I can break the cycle of BROKE once and for all
• I choose when I work, how I work, and the ways I receive money. Therefore I work because I WANT to, not because I HAVE to.
• I empower my rights to take action and use my voice to speak up for what I want most in the world
• Through education, I am empowered
• To grow old is a privilege, and to share wisdom is a gift
• We live in an abundant Universe. I attract abundance.
• I will start where I am with what I have TODAY.

Now, doesn’t all of this feel a lot more positive and exciting? (Kind of makes you look forward to retirement, right?)

3-Make Sense of the Money Options (Or, choose the best path to retirement based on what you desire)

Now, let’s start researching the different options for your money! I’ve listed a few popular ones here, as well as suggestions about insurances and investments that could be majorly beneficial for your retirement on down the road.

1. Traditional or Roth IRA– An IRA (individual retirement account) is the easiest way for self-employed people to save for retirement. You can open one at your local bank or online with ease. 

Best for: Those just starting out saving less than 6K per year, over 18 and have earned income.

2. Solo 401(k) (also known as a Self Employed 401(k) or Individual 401(k)). This is a qualified retirement plan for Americans that was designed specifically for employers with no full-time employees other than the business owner(s) and their spouse(s). 

Best for: A husband and wife/partnership team, or a solo entrepreneur who has no employees and is making a profit. A solo 401(k) is a great choice for those who can and want to save a lot money for their retirement (more than the 6K above). Setting up a Solo 401(k)makes a lot of sense for sole proprietors, owners of an S Corporations, C Corporations, or partnership that requires no additional paperwork until your balance is 250K+. You can set this up through your payroll system, like Gusto. (I use this software for payroll + benefits for many of my clients because its simplet to use and intergrates with QBO.)

3. SEP IRA (Simplified Employee Pension) is a plan which provides business owners/freelancers with a simplified method to contribute toward their employees’ retirement as well as their own retirement savings. Any business owner who is in an individual LLC, partnership, S- or C- corporation with less than 10 employees should consider an SEP (over 10 you might want to consider the 401k option). 

Best for: Self-employed people or small-business owners with no or few employees and offers flexible contributions that are easy for employers to increase, decrease or suspend. SEP IRAs have a low administrative burden, and they require limited paperwork and no annual reporting to the IRS.  You can set this up through your payroll system, like Gusto. (I use this software for payroll + benefits for many of my clients because its simplet to use and intergrates with QBO.)

4-Create your Retirement Vision

Now, it’s time to commit to your vision! Go over the last few steps and decide how you want to spend your retirement, take care to heal any blocks you have around money, and start looking into options on how to make the most out of your money. (P.S. Remember that we’re simply reviewing options right now, which, of course, doesn’t cost a dime!)

One great action step here is to create a retirement Pinterest board, and add to it both practical steps and visions of how you see your retirement.

5-Create Your Action Plan

Now, let’s start with an action plan to put all of this into motion for you!

First, let’s start with getting some basic numbers. Consider the style of retirement you’re planning to have. Now, think about the kind of money it would take to keep that dream afloat (and of course, remember–it’s just a number! Don’t let it freak you out. Really.)

Then, ask yourself this question…

Do you need to make more money, or will the amount you’re bringing in now get you started in creating this vision?

If you seriously have no clue, no worries! Check out this retirement calculator tool from Nerd Wallet and get an idea of where you stand right now.

Now, here are a couple rules of thumb when it comes to your retirement plan:

• To maintain your current lifestyle during retirement, plan on bringing in 85% of what you’re currently making
• Create an emergency fund (roughly 3 months worth of income) in a savings account. Then split the average gross income between a high-yield savings account and your retirement

Finally, check out our handy-dandy Retirement Checklist and refer to it often:

• Create a Retirement Pinterest board to help you keep your vision alive
• Talk to any of your previous employers to see if you have any 401K money left behind to roll over into your equivalent account. Call your prior HR department to iron out the details.
• Build up your savings account by setting up auto-deposits. 
• Create or update your Will
• When you’re ready to hire a 3rd party to help with your financial plans, speak to at least 3 different financial advisors before settling on one. You’re allowed to shop around!
• Check in annually with yourself on your retirement goals vs. the steps you’ve been taking, and correct course along the way

So there you have it! 5 simple things you can do NOW to start you plan for retirement, and without spending a single dollar. Which of the steps do you plan on taking action on first? I’d love to hear about it in the comments!

Until next time,

Love, Light, and MONEY, Honey…

Kaylee