Neeraja Narayanan
Mar 24, 2023
Let's Make Retirement Really Stress-Free Retirement
A lot of people put off retirement planning because they are afraid of how complicated it can get. However, if you address these four questions below you will have the essentials of your plan.
1. How much income will I need?
Experts say that you need about 80 percent of your pre-retirement income to live on.
Don't assume that your financial needs in retirement will be considerably less than what you need to live on during pre-retirement. Even if your mortgage is paid off, it is likely your medical expenses will increase. On the other hand, your other expenses such as utilities, taxes, food and clothing, will probably not change much from what they are now. Basically, you will need most of the finances you have now, in order to live a healthy and relaxing retirement. There is no 1 rule that fits everyone. It depends on the lifestyle you want to live in retirement, and what activities you would like to do.
2. Where will my finances come from after I retire?
Investing for retirement will help provide you with much of the income you'll need
when you retire. Some people choose annuities, others play the stock market, etc...
However you choose to invest your finances, the sooner you do, the better. The size
of your retirement fund will depend on your investment decisions. The more you are
able to earn on your investments during your working years, the more money you will
have when you retire.
3. How can I contribute money to my retirement plan?
A “Pay Yourself First Plan” is always recommended. Most people pay their bills
first and then try and save a little money, at the end of each month. If you pay
yourself first by putting aside money safely for yourself, before you pay the bills,
there is no risk of spending the money later. The sooner you begin saving, the
better. Don't waste precious time. It can never be recovered. Ask your financial
advisor about the “cost of waiting”.
4. Which investments offer the best chance for satisfactory investment growth
without excessive risk?
To create a retirement fund that will meet your retirement needs, some risk must
be taken. If you invest all your money in a "safe" money market fund earning 2
percent or 3 percent annually, you'll never have enough to retire on. Learn how to
invest wisely by speaking with a financial advisor. They will help you place your
money correctly, so that it generates the best return for your specific needs.
Call today and let me work with you to create the plan that will accomplish all of
your goals so you can have the financial freedom to enjoy the retirement of your
dreams.