When you hear the word “Retirement”, what comes to your mind instantly? “Relaxation, seven-day weekends, sleeping till noon, living by the beach?” A happy retirement can be about sitting and watching the rest of the world roll on by or having time to do everything you`ve dream about.
Retirement is all about embarking on your life’s greatest adventures. Today, people think of retirement as the time when they can finally put their feet up and enjoy life without any stress or responsibilities.
Determine Your Retirement Goals
When you plan your retirement, you must first visualize your lifestyle to plan your post-retirement lifestyle. Visualizing will help you answer a few burning questions related to your expenses. Once those questions have been answered, you can then figure out a rough estimate of the amount of money that you would need for retirement so that you can live the life of your dreams.
Be an Early Bird
Once you figure out the amount of money you will need to have a comfortable life during retirement. So, you will understand that you need to get started with your retirement planning as early as possible.
Even a small amount of money saved now can go a long way at retirement time, all thanks to the power of compounding interest. Therefore, starting early is crucial.
Choose an Investment Package That Suits You
In today`s world, there are numerous financial oriented products which can assist you in building a sizable amount for your golden days. So, choose the product that matches your risk profile and can give you the desired annual returns on your capital.
Your retirement plan can be a flexible investment plan which allows you to choose an investment package that ranges from aggressive to balance to conservative, based on your level of risk tolerance.
Also be aware that investing in a vehicle such as a retirement annuity carries significant tax benefits. Your financial advisor will explain these to you: Make your planning as tax efficient as possible.
Re-visualise and Re-plan
This will help determine if your pre-retired lifestyle has changed or not. Also, evaluate the growth of your retirement savings over the years and assess if you are on the right track. One of the greatest rewards of a life well lived is peace of mind in your golden years. Talk to a financial advisor to get an expert opinion on your retirement strategy.
References:
https://takechargeofyourmoney.blog/
www.cnbc.com
moneysmart.gov.au
blog.moneysmart.co.za