Nobody likes to think about retirement. To most people, it is a world of bingo and golf, and an occasional trip to the park or museum to take away some of the boredom. To many, it is an exciting opportunity to do all the things their work life wouldnâ€™t allow. No matter what your views on retirement, there is one thing that you need to consider above all else - retirement planning.
A surprisingly few percentage of the population considers retirement planning as part of their financial planning for the future. Many people take our insurance policies but thatâ€™s about it. Not many have a sound understanding of their future needs or even how much money theyâ€™ll need every month after retirement. Itâ€™s not just about the cash for rent, food and other sundry expenses, either: itâ€™s about ongoing medical care, leaving something to your children, enjoying your time in retirement with regular holidays and a lot more. Here are some valuable tips that will help you when you ultimately plan for retirement.
Tip 1: Do It Now Rather Than Later
Retirement planning isnâ€™t something to be left to the eleventh hour. Even when itâ€™s expected it can deal a harsh blow to your version of reality but when it comes because of something unexpected, the experience can be a nightmare. So start planning now - the latest you should begin is about 10 years before you plan to retire.
Tip 2: Donâ€™t Overspend on College Education for Your Kids
Unemotional and harsh as that advice may seem, itâ€™s probably the one thing that will keep your head above water in the future, financially speaking. Statistics validate the fact that where your child acquires their degree has little bearing on how well they do in their chosen careers. So save yourself some trouble and a lot of money by planning to spend within your reach, not beyond it.
Tip 3: Dig Deeper Into Your Company Retirement Benefits
Find out exactly what your company is offering in the way of retirement benefits and factor that into your retirement planning. People often find out too late that if they retire before the age of 65, theyâ€™ll have to bear the high cost of medical insurance (for example) until theyâ€™re eligible for Medicare. Donâ€™t make that mistake.
Tip 4: Work On Risk Management As Soon As You Can
As soon as your kids are out of college, start planning your risk management approach. Never consult with an insurance advisor on this because they work on commissions and may try to sell you products that benefit THEM rather than YOU. Itâ€™s not a slur on insurance advisors, just a statement of their limitations. Rather, go to an independent consultant such as â€˜Your Financial Lifeâ€™. They can put you on the right track because they have no vested interest other than you.
Tip 5: Keep Track of Your Expenses
This is a critical element because unless you know what youâ€™ve spending, you canâ€™t know what youâ€™re saving. Good cash flow analysis will help you achieve your retirement goals much easier that not doing it on a regular basis.
Your financial future is your only lifeline to a happy retirement. Donâ€™t let it slip through your fingers for lack of knowledge or awareness. Again, take the advice of an expert company to get you through the numbers and safely to the other side of retirement. Click here to learn how you can do this.
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Top 5 Tips for Retirement Planning
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