Planning for retirement is something that many people tend to put off, thinking that they are still too young or that life will sort themselves out in the end. But, sad to say, things don’t happen the way we expect them to.
For sure, you don’t plan on working even as you reach twilight years. You might have the perfect retirement in mind; it probably involves sipping cocktails on a beach or lounging in a cozy mountain cabin.
However, it takes meticulous financial preparation to realize those dreams, which can include setting up savings accounts and hiring a life insurance lawyer. Here are some practical pointers to help out with your retirement planning, regardless of your current age.
It’s never too early to consider retirement planning. When you are young, time is your most valuable asset. The savings and investments you make today will have 30 to 40 years to compound and grow. Also, the wider the gap between today and your retirement, the higher the risk level your portfolio can withstand.
Determine Your Goal
According to financial experts, an individual’s ideal retirement income is approximately 80% of the final pre-retirement salary. That is, if you are earning $100,000 a year, you need to save at least $80,000 annually to ensure a comfortable lifestyle in your retirement years.
Take note that this amount can be adjusted based on your other income sources, including pensions. It would be best if you also considered your health as well as your desired lifestyle. Meaning, if you’re planning to travel a lot during retirement, then you’ll have to adjust your target amount because you will need more than that.
Plan with Annuities
With annuities, retirees can turn a lump sum of money into a consistent cash flow source for a fixed number of years. They can be used to supplement their pensions and ensure them a stable income for life.
In case you have annuities and need additional funds for an emergency, you may opt to sell a portion of it. Just be sure you will be dealing with a reputable factoring company that buys annuities at competitive rates.
Save Money Strategically
Even with economic fluctuations, consider how to best allocate your investments between various assets, such as stocks, bonds, and cash. It’s an effective way to keep your retirement investments growing and dampen the impact of market swings.
Even with a sound saving and investment strategy, untoward events, such as illnesses or extreme weather, can put you as well as your family at risk. Consult with a financial advisor to evaluate your situation and get the right levels of protection.
With the right insurance, you can focus on retirement planning without worrying too much about all the variables. If you encounter any claims problems, you can always get a lawyer to assist you.
Financial preparations can give you peace of mind and make you feel more confident about living a comfortable lifestyle later on. No matter your current age, it is to your advantage if you create a solid plan for your retirement today.