Retirement is something folks have to think about at some point, and the earlier people think about it, the better. Failing to make proper retirement plans could cause all sorts of headaches during a person’s golden years, which is why the following steps are vital.

1. Start by Setting the Goal

A financial expert will tell people who are considering a retirement account to start by setting a goal. According to the experts at SoFi Invest, “…it’s best to figure out how much a person is going to need to live comfortably.” Coming up with a concrete number can make a goal much clearer, and it could make the plan more realistic. Ideally, a person who is hoping to retire will talk to a financial adviser to make sure this retirement account is properly funded.

2. Creating a Saving Plan

The next step to take before thinking about retirement is creating an effective savings plan. No matter how good a person is at savings, he or she could always use a little improvement. Being able to save effectively is one way to reach retirement goals. This does require some financial juggling, like learning to de-prioritize certain expenses such as shopping sprees or getting a new vehicle every year. If one can do this effectively, then reaching that goal gets much easier.

3. Addressing Debt Early

Debt can cripple one’s ability to save and create a robust retirement plan. If a person is trying to retire well, then it’s important to realize how much of a poison debt can be. One should recognize that debt is painted in many colors. Sometimes, it is called a mortgage or a car note. Excessive debt can make it difficult to focus on building good retirement savings. The goal should be to get rid of or reduce debt as much as possible.

4. Deciding on a Plan

After addressing personal financial issues, a person needs to figure out which retirement plan would work best. The truth is there are a number of them out there, and they all have something to offer. Choosing the right one helps reach a specific goal faster. A popular retirement option is the 401(k), which is good for a person who works for a company. This company would offer this plan and match any contributions made by the employee. Creating a healthy retirement savings can be done quickly enough if this type of plan is used.

5. Choosing to Invest

The next thing to consider is investing. It’s wise to invest and diversify a portfolio to retire well. Investing allows people to create multiple streams of income. Try to keep in mind that fees come along with each type of investment, so pay attention to that. Still, people can create a residual stream of income, and this means a retired person could continue to earn money without really working. Investing doesn’t always work out, so it is a bit of a risk, but it’s still a risk that should be taken. Ideally, a person shouldn’t invest more than he or she is willing to lose.

6. What to Invest In

Deciding to gamble some money is great, but it’s important to know where to gamble. Yes, the reality is the stock market is full of risks; that is its nature, but some stocks are riskier than others. There are many things one could invest in that carry minimal risk like mutual funds, savings bonds, and treasury securities, just to name a few. For folks who don’t know much about the stock market, it’s important to talk to a professional to get some guidance. The goal here is to invest in something and leave it there for a while.

7. Establish a Beneficiary

Once a retirement savings account is chosen, it’s important to establish a beneficiary. This can be done while filling out the application. It’s a difficult decision, and thinking about this may seem morbid, but this prevents issues that could come up later on. If everything is not clear when applying for this type of account, it is wise to ask for help, or have a consultant fill it out so that there are no mistakes.

Those are the steps one can take to open up a retirement savings account. Anyone who’s planning to retire must not only pay attention to these steps but talk to a financial expert to see if there are holes in the plan or a way to improve it.