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Posts Tagged ‘Important points to plan your retirement’

Gone are the days when Americans retires with a gold watch, without any worries for the future. Times have changed, and rising inflation and economic recession mean we need to plan for our retirement so that life after retirement goes off smoothly and we do not face any problems, at least financially. At present, only 44% of the Americans plan for retirement. Cathy Weatherford of Insured Retirement Institute feels that though economic conditions are improving, more Americans need to be planning for their retirement.

Choose your retirement date: If you retire before 60, you will live another 30 years and therefore require more money. You will need health insurance as well.

Determine the amount of money you will need: depending upon your living standards and the rate of inflation, you can calculate the amount you will need to sustain yourself for another 30 years. This amount will be influenced by your obligations at that time, such as mortgage repayment, if left, monthly expenses, investments and health insurance.

Increase the social security benefits: if you can wait for a few years, your social security benefits get increased by 75%. So, instead of collecting them straight away after retirement, wait for a few years.

Think about taking annuity: Annuity gives you monthly payments after retirement which helps sustain your lifestyle. Talk to insurance companies and get annuity plan that is best for you.

Take retirement plan from your employer: retirement plans are tax deductible and require little contributions from the employer.

Keep your savings for your retirement: This is important as you will not have to ask for your son’s help after retirement. If you eat into these savings, you lose principal and interest. You may also lose tax benefits.

Diversify your portfolio and make it safer: Keep some of your money in bank which earns you interest, and also invest in safe stocks. This way your risk gets covered and you keep getting attractive returns. You can also opt to invest in index mutual funds.

Take professional advice: if you think you cannot take financial decisions, let a professional investor take decisions on your behalf. Rely on someone you have known for long period of time and do not take online advice.
Time to plan for retirement is now: It’s never too late or early to plan for retirement. Do not take any debts in the period just before retirement.
Put the plan in practice: Keep recording your expenses and investments.
Buy whole family insurance plan: This keeps your expenditure down to a minimum.