Financial Planning for Retirement
For those of us who are retired or are close to retirement, savings is a very important factor. When you were 25, you did not care how much money you had saved away. But now, with savings being you main source of income and comfort, things are different. You've been preparing for retirement all your life. But there are two important factors you should keep in mind:
1. This is not your parents' retirement. 30 years ago, things were VERY different. Gasoline was practically free. (Or at least it seems that way in hindsight.) Older folks relied on Social Security, pension checks, and savings to get them throughtheir golden years. Retirement didn't last too long because life expectancies didn't go far beyond the age of 70. The average male didn't even make it that far.
Your retirement will be very different. Inflation is skyrocketing. Life is way more expensive and demanding. You will live longer, and you'll have a more active (and EXPENSIVE) lifestyle. Your parents may have survived on 70% of their pre-retirement income (perhaps you've heard this common rule of thumb?). But that's probably not enough for you.
2. No one is watching your back. If you rely on tradictional retirement income, then you are going to find it difficult. Why? Social benefits are decreasing all the time, and your personal savings are the only factor that you really have control over. How yoy manage these savings will have the greatest impact on your post-retirement life.
Your savings and their continued growth is what really matters now. Inflation is on the rise with gas and food prices are record levels. So, unless invested properly, your money is losing its value. You need your money to continue growing to be able to maintain your comfortable lifestyle.
So invest wisely and carefully. It is not just important to keep the money you have now, but you need it to keep growing to ensure a steady income in the future.
If you are not up to the task of investing, please consider getting advice from a professional investment advisor.
Retirement Investment Tips
1- Invest convervatively, especially if you have no sources of steady income other than your savings and investment porfolio. Make sure all your investments are sound, do not gamble or take risks, and play it safe.
2- Be tax-savvy in both your investments and cash withdrawals. Know the impact of the moves you make with your money on your taxes. You need to minimize your taxes and maximize your savings
3- Be wary of scams. I know this has been said a thousand times, but fraudulent schemes targeting seniors are on the increase. if someone comes to you with an investment that is too good to be true, then it most probably is.
4- Seek guidance from a professional investment advisor if you don't know what to do. Make sure this professional is certified and has good experience. In most cases, you really do not need an advisor and having will will cost you more money than it is worth. But if you feel you need help with your savings, then do not just ask anyone. Get a professional's advice.
1. This is not your parents' retirement. 30 years ago, things were VERY different. Gasoline was practically free. (Or at least it seems that way in hindsight.) Older folks relied on Social Security, pension checks, and savings to get them throughtheir golden years. Retirement didn't last too long because life expectancies didn't go far beyond the age of 70. The average male didn't even make it that far.
Your retirement will be very different. Inflation is skyrocketing. Life is way more expensive and demanding. You will live longer, and you'll have a more active (and EXPENSIVE) lifestyle. Your parents may have survived on 70% of their pre-retirement income (perhaps you've heard this common rule of thumb?). But that's probably not enough for you.
2. No one is watching your back. If you rely on tradictional retirement income, then you are going to find it difficult. Why? Social benefits are decreasing all the time, and your personal savings are the only factor that you really have control over. How yoy manage these savings will have the greatest impact on your post-retirement life.
Your savings and their continued growth is what really matters now. Inflation is on the rise with gas and food prices are record levels. So, unless invested properly, your money is losing its value. You need your money to continue growing to be able to maintain your comfortable lifestyle.
So invest wisely and carefully. It is not just important to keep the money you have now, but you need it to keep growing to ensure a steady income in the future.
If you are not up to the task of investing, please consider getting advice from a professional investment advisor.
Retirement Investment Tips
1- Invest convervatively, especially if you have no sources of steady income other than your savings and investment porfolio. Make sure all your investments are sound, do not gamble or take risks, and play it safe.
2- Be tax-savvy in both your investments and cash withdrawals. Know the impact of the moves you make with your money on your taxes. You need to minimize your taxes and maximize your savings
3- Be wary of scams. I know this has been said a thousand times, but fraudulent schemes targeting seniors are on the increase. if someone comes to you with an investment that is too good to be true, then it most probably is.
4- Seek guidance from a professional investment advisor if you don't know what to do. Make sure this professional is certified and has good experience. In most cases, you really do not need an advisor and having will will cost you more money than it is worth. But if you feel you need help with your savings, then do not just ask anyone. Get a professional's advice.
posted by Big Z at
3:39 PM
1 Comments:
Excellent tips. I have taken a printout.
I like to add few tips for your readers: Be disciplined. While its good to go to the movies, dine, have a binge once in a while, don't compromise on the money you have decided to set aside every month for retirement. And importantly do a 'cost-benefit analysis'. If the Rs 1,000 you spent on movies and dinner last week was instead invested in an equity fund, it would have grown to nearly Rs 20,000 (at 10% compounded growth) after 30 years!
Retirement Plans, Retirement Savings, Retirement Investments,Retirement Income, Retirement Funds,Home based Business
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