Preparing for your retirement – make sure you consider these three things
#1: Retirement estimators are a must
Your first step in your retirement strategy is to have a ball-park figure on what you need to aim for to retire comfortably. That’s where retirement calculators and meeting with your financial planner can help.
They’ll also show you how far behind you are in your retirement planning so you can figure out what you can do to catch up if necessary.
A good retirement calculator is the Old Mutual Retirement Calculator, but there are dozens out there that can help.
#2: When planning for your retirement, make sure you know what retirement means to you
“You need to think about your lifestyle,” author and personal finance coach Lynette Khalfani-Cox told USA Today. “So many people get into trouble after retirement because they pick an expensive hobby.”
So make sure you know what you want to do, where you want to live and what types of activities will keep you busy. This way, you’ll know what it is you’re retiring to.
#3: Hire a financial planner to make sure your portfolio will always have growth
“People get overly focused on short-term market risk, and forget about longevity risk,” says USA Today. “Your biggest risk is not what the market does in the next three quarters. It is that you will wake up on your 70th birthday, or 80th or 90th, needing a substantial amount of money, and not having it.”
That’s where a financial planner can help. His job is to make sure right mix of shares, bonds and other savings so you have growth in your portfolio.
If your financial planner isn’t doing this, use these tips to find one who will.
Planning ahead is a must. If you don’t spend the time on your retirement planning now, you’ll be in trouble later.