10 Best Practices To Plan Your Retirement With

A tirelessly worked out present is only solaced with the thought of having a relaxing and comfortable future. We all dream and plan, but only some are truly fulfilled. When you allocate your today in making fruitful plans and work them all out carefully, only then you are able to productively unleash a desirable retirement stage.

Recent study determines that the average Americans live roughly for 20 years in retirement. With this long time span of retirement age, you need to make plans today to help secure a stress-free, ideal future. The dreams that you have always had of exploring the world by travelling, living in a house that is yours and a source of work-free income that lets you spend without worrying about emptying your bank account, can be fulfilled.

Experts determine that 70 – 90% of our preretirement incomes are required to maintain our standard of living after retirement, making it super expensive. Yet the situations of crisis with health issues requiring medical treatment can be financed easily, with early plans, designed and worked for now.

Following are 7 simple rules to achieving the “best life” in your golden retirement years.

Plan A Diverse Portfolio

In order to maximize returns and minimize risks, planning a diverse portfolio is essential. Aren’t we all aware of people who have thoughtlessly invested in companies which have grown into big shots like Google, Apple or Facebook? Well it wasn’t just sheer luck the investors have been depending on while investing in them; it was rather carefully calculated, far sighted approach they had pertained. Scrutinizing the prospect’s strategies, then allotting their valuable money in them by investing.

Predicting a market and then investing in it requires crucial planning. However it is wise to select from a diversified range of the asset class and the geographical presence of the investment prospect.

  • Asset Class

An asset class defines the nature of the asset. Whether they are tangible ones like bonds, stocks, inflation protected securities or real estate properties. With a diversified portfolio you are not reserving your investments to just one asset class but carefully placing in different ones, wherever the prospect seems more profitable. Allocating all the investment in one can restrict various opportunities for an investor.

  • Geographical diversity

Diversify your portfolio by making unbiased choices for investments in countries other than yours, to serve you beneficially. Since some countries may have a lower inflation rate, investment fee than yours, and the market can be flourishing there compared to that in your country so taking a deep dive by investing in a market of some other country rather than your own can intensify returns for you.

Minimizing Investment Fees

Investment fees can drain up your accounts. It is not necessary to prioritize your trust in a broker that charges more.Research shows that when it comes to investment fees, the higher expense ones do not perform better in your favor compared to the lower expense ones.

So it is advisable to make investments in index funds that are passive investments with lower fees instead of actively managed funds. Following are three different types of investment fees and the ways of minimizing them

  • Fund fees

A fee ranging normally from 0.2 – 2% and charged by the managers of mutual funds and ETF. They can be comprising of administrative cost, management and 12B-1 fees. Invest using low ETFs instead of higher fee mutual funds, in order to keep these funds low. Since ETFs are less expensive to operate and require significantly lower management and sales support, to pass savings to you.

  • Advisors fee

An advisor fee is a fee charged by a financial advisor in return of the financial services he provides to you. It can be as low as 1% of your investment with him. Choose an advisor wisely, someone who promises greater returns to you by minimizing risks and keeping service fee low. Not charging extra fees for any other reason than the fixed 1%.

  • Trading fee

This fee is charged on investors upon buying and selling funds or other assets. The cost can vary depending on the broker you are using and also if you trade often, you may be facing tax implications too that can be very costly. So if you are willing to maximize your investments to aid in your retirement stage, you need to use commission free ETF stocks.

Utilizing Idle Cash

Invest the idle cash in profitable prospects rather than stacking it up. Since investing it wisely can enable profit returns. Even low returns, are better than nothing at all. However intimidating the idea of investment can seem, they are always better than locking away the possibilities that can affect you in great ways.

You are especially thankful to having had invested them when you near retirement and receive whatever returns possible, instead of keeping idle cash which would have lost all its worth with the constant inflation.

Roll Your Old 401k Investments

A 401k investment is a way of securing a tax deferred investment. An employer sponsors a 401k for the employee in which a sum is deducted from the employee’s pre-tax income; investing for their retirement time. However qualified an investment prospect 401k is you still need to keep a few things in mind.

Statistics show that an average American quits his old job and switches to a new one every 4.6 years. With rapid job changing one loses track of his old 401k investment and how to adjust a new role with the new salary. You may be subjected to paying compounded fees, and lost in compensation packages. Unless you roll over your old 401k to a rollover IRA account, which will prevent you from overpaying and limited investment options.

Deferring Tax Payments

Make use of great financial tools that help defer tax payments upon sale of a property. With the help of IRC 1031 and charitable trust tools, one can easily avoid tax for a long time. Taxes can reduce the amount of your capital gain amount.

With IRC 1031 tool, you purchase another property of same or greater value in exchange for the one you are selling. Upon using this tool, an investor can easily divert attention of his property tax on sale by buying another property, maximizing capital gain, subsequently increasing the amount of total investment made for a great retirement period.

Acquiring a charitable trust IRC tool means, you are investing your property by selling it to a trust, in a tax deferred way. The trust will in turn facilitate you with lifelong scheduled funds. And they can be a passive income for you upon retirement.

Although if you do not avail either of the 1031 or Charitable Trust IRC tools, you will be subjected to a capital gain tax, which reduces your chance of availing the profit for your retirement.

Prioritize Saving Habits

Recent facts state that fewer than 50% of all Americans have calculated how much they need to save for retirement.

It is really difficult to inculcate a saving habit without a goal or source of motivation. Consider understanding these points which may prove to be really good in the long run.

  • Saving can help you secure a safe future, in times of need, you do not have to worry about finances
  • Helps expanding your investments for a better future after retirement. You can utilize those savings by purchasing promising stocks, bonds, securities with them.
  • Helps in making payments to wipe off quick mortgage loan in case you acquire a hard money loans from a well-known organization. With a hard money loan an investor can expand his investing abilities, by acquiring loan that is backed by another property. Investing that loan in a greater prospect and then paying off mortgage monthly payments by the earnings from that investment. The initial lump sum payment can be achieved from the savings that you have kept. Making the entire loan acquisition and repayment journey smooth and stable.

Savings have a wonderful impact on your investment portfolio and all other things for your future. It may seem hard to restrain oneself from the luxuries of life and instead of spending, allocating the money in investments, but at least it will be better for a stage when you will be jobless and with no other source of income. At this point the saved possessions can be your greatest savior.

Pay Off Debts Before Retirement

No more liabilities hanging on after retirement. Make this a goal to create a sensible plan and work accordingly. The last thing to bring you joy can be a property with ongoing mortgage payments. It is an investment turned liability so you can never appreciate it. The wisest thing to do is plan a short term mortgage payment plan as long as 5 years and not more. Allocate your finances in a way that you are able to spend as much as you can in mortgage payment ultimately achieving a stress free retirement period.

Availing Tax Advantaged Accounts For Fund Holdings

There are ways an investor can hold their investments in a tax free manner. Make a smart move by placing your assets in tax advantage accounts such as 401k and Roth Individual Retirement Account. In order to achieve an optimal tax free investment. By placing the investments that have to pay dividends in these tax-advantaged accounts, they can avoid being taxed upon reinvestment.

In an Individual Retirement Account, a person can start placing an annual amount of $55000, which can begin with a lesser amount and after age 50, can be increased from the standard amount.

Facts determine that 30% of Americans did not participate in contribution plans such as 401k even when they were provided access to it.

Strategically place your investments in taxable and non-taxable accounts in order to minimize over all taxes. Work your ways with a knowledgeable financial advisor who can wisely guide you along the path and benefit you with maximized amount ownership after retirement.

Avoid Temptations

No matter how tempting it is to cover your problems with easy retirement money withdrawal, you still have to swear to resist. Early withdrawal can lead you to serious drawbacks. Some of them are:

  • You will lose tax benefits
  • You will have to pay withdrawal penalties
  • You will lose interest

Strive To Delay Social Securities

This may be the toughest challenge you may have to face leading to an added benefit you cannot deny. As per a statement by Greenberg, “For every year you can delay receiving social security payment before you reach age 70, you can increase the amount you receive in the future.” At age 62 you are at the earliest of receiving Social Security retirement benefits, but if you wait till 70 years to avail them, your monthly benefit increases and an additional income is added up to it quickly. This benefit can come to your facility as well as can be availed by your spouse.

Greenberg further adds, “Recognizing the need to put money away for retirement is the first step.” This helps you realize that the more creatively you can save for your retirement the greater the benefits will be waiting for you at the end of the day.

Remember

According to a study starting too late and saving too little topped retirees’ list of regrets. Which means, you will continue to worry in your golden days. With each passing year, the late you get in starting to strive for retirement can put your hard work throughout your life to strain. But by this I am in no means, if you have gotten late in realizing you should not put an effort at all.

Plan your retirement today to avail a fruitful future. With these practices at work you can easily create the retirement life of your dreams. Maximize returns of your investments and minimize risks and troubles.

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10 Interesting Side Jobs to Take Up After Early Retirement

Planning for an early retirement and not sure how you would kill time?

Retirement doesn’t come with a clause that you can’t work anymore! Perhaps it’s the time to work for your passion and chase your dreams. You can always take up some side jobs that would keep you occupied and in the same time fetch you some dollars. Some people start feeling low after they retire and are not able to cope up with the sudden change from being overly busy to doing nothing. A little work you do could be a motivation for yourself and make you feel optimistic about yourself.

10 Interesting side jobs to take up after early Retirement

Researchers say that it’s not good to shut yourself completely from the work life at a younger age. Taking up a part-time job could keep your mental and physical health at balance. This would change the way any retiree to feel that they are no longer fit to work and would be spending all day sticking around the couch to watch TV or play video games. Early retirement has certain benefits as well.

To all the retirees out there and those who are planning for an early retirement, we share with you 10 interesting part-time jobs to take up after your retirement and spend quality time.

10 Interesting side jobs:

Wear your host cap and meet new people

If you love meeting new people and interacting with them, then hosting tourists can be a great option. There are sites like Airbnb, homestay etc. where you can rent out a room to tourists. You can share your knowledge about the place and suggest the places to visit etc. All you need to do is register on their website and add details of the room along with pictures and facilities provided.

Pick up your paint brushes and create Artworks

If art was sometimes your passion but work life kept you away from your brushes, then now it’s time to chase it. You can start creating your artworks and sell them online. You even try out some art galleries that might shred out a space to sell your art.

You can chase any hobby like join a band, create sculptures, paint etc.

Become a personal coach, trainer or instructor

Sharing your knowledge is a good approach especially when you can make money out it. You can become a personal swimming coach, soccer coach or anything. You can even take pieces of training based on your experience or conduct academic lessons for kids.

Share your views and start blogging

If you love writing and are good at it, then you can start a blog to share your views. You can work wherever you want and at your own pace plus earn money as well. Writing a blog requires a lot of research and you can broaden your knowledge.

Rediscover the art of carpentry

If you love playing with wood and turn it into something creative, then you can try carpentry. Buying branded wooden furniture every time might be out of the budget, you can show your creative side with turning the old furniture into something new and trendy.

Spend a day with a pet

If you are fond of pets then pet sitting or dog walking can be the great side gig. People are so busy with their lives that buying a pet would be easy for them but no time to take care of them. You can spend a day with the pets and get paid.

Become a Yoga Instructor

If you love doing exercise or yoga, you can instruct others and help them learn yoga. Life has become too stressful today and so people are looking for ways to overcome the stress. Yoga has gained significance worldwide and there is great demand for yoga instructors.

Relive the star in you

If you love performing and showcase your skills in public, then you can try hands-on street performance or stage shows etc. Not sure about how much money you’d make but if it’s your passion then go for it.

Become a drone pilot

Drone pilot is the latest buzz in town. All you need to do is take pictures of big companies like Amazon, Facebook, for real estate agencies, for film-making and advertising. You need to pass a test to become an FAA licensed drone pilot.

Try hands-on house sitting

If you love exploring new places, you can be a house sitter, travel around and get paid to stay at someone’s house. You need to take care of the house, pets and plants when the person is out of town.

Summing up:

Retirement is a new phase of life which you can spend at your own convenience. Spend this phase by exploring your passion and hidden talents. Hope you can find your side job from the listed ones and enjoy your retired life.

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Americans Are Spending More Money after Their Retirement

How much are you spending post-retirement?

Most people think that they will spend less money after they retire and hold back any unnecessary expenses. In reality, people spend more, at least in the first few months as they are not aware of the regular expenses to expect.  Economists at the Investment Company Institute (ICI) and the Internal Revenue Service (IRS) analyzed the tax data and created a report, which shows that after claiming social security; more than half of the taxpayers are spending more during the first three years. The analysis report by ICI shows that Americans maintain or increase spendable income after they claim their Social Security. Nearly 90 percent of the Americans hold or have income from employer retirement plans, IRAs or annuities, says the report.

Americans Are Spending More Money after Their Retirement Spending habits define how well you handle your finances. While you’re working, you will have great plans for your retirement on how much to spend and save for a comfortable living. But in reality, it doesn’t work with a plan. It takes time to analyze our expenses, and then you can follow a routine to cut down over spending. And so, you plan well & save more for the retirement and you can take control over the expenses post-retirement. But this doesn’t mean spending won’t slow later in retirement, researchers said.  People with different income margins have different spending habits. The three categories of people with their spending habits:

Category 1: People with lower income

Everyone has big dreams for their retirement. Some people plan well in advance to achieve those dreams. Before retirement, we all calculate and create a budget to follow when we retire. But does everyone abide by the budget? A survey says that people with lower income spent more than they were before retirement. The survey was based on the income left after taxes and not the actual spending count. The lower-income earners were more dependent on social security benefits than the retirement income. The survey report and its components: The researchers stated in the report: “For many individuals, retirement appears to be a multi-year transition rather than an action taken at a discrete point in time.” The report by Investment Company Institute economists (ICI)was made keeping in account the following factors:
  • Salary and wages
  • Social security benefits &
  • Retirement income (distributions from employer plans (401(K)), annuities & IRAs etc.)
  • Pensions

Category 2: People with mediocre income

The survey says that people in the category of mediocre income also spent as much as the people with lower income. For people with mediocre income, social security plays a vital role post-retirement.

Category 3: People with higher income

On the other end, the people with higher income spent slightly less than the lower and mediocre income earners. The retirement income matters more to the higher-income earners than the rest. For the people with higher income, the benefits from the employer through 401(k) account would be high as well and so is the dependency on it post-retirement.

So, how to save for retirement?

With the fluctuating needs and expenses, you might feel it difficult to have a fixed goal when it comes to how much to save for your retirement. As there will never be a fixed amount for how much to save but you can have a fair budget to chase. The thumb rule: Instead of chasing a moving target, define your budget. The experts give you a thumb rule for how much to save for retirement, which suggests that most of the people devise to spend nearly 70 percent of their pre-retirement income (current income generated while working) in retirement.  Now that you have a tentative figure of how much you might need to save, the next question would be: Have you saved enough for your retirement? Few of us think that their spending habit will remain constant after retirement and thus can save a fixed amount to secure their future. But that’s not the case. Initially, you might not understand how to handle your expenses and where you can cut on the edge. One thing is that your spending could drastically fluctuate every year, especially when you are looking for a long time to retire (maybe 30 years or more). The report stated that most people claimed their social security at the age of 62 to get the benefits of it later. Also, there were a set of people (nearly half) who were still working 3 years after they claimed social security. For a bigger benefit, it’s better to delay taking social security and enjoy the benefits to the fullest. So, what is the right time to claim social security and enjoy the benefits?

Summing up:

Post-retirement you might feel that you would spend less and focus on the essentials alone. In the initial phase, you would spend for leisure as well. So, prepare yourself well in advance for your retirement to make it a painless journey.]]>

Your Complete Beginner’s Guide to 401(K) Plans

Your Complete Beginner’s Guide to 401(K) Plans

What is 401(k)?

401(k) is indeed an amazing tool that helps you to save for your retirement and enjoy the benefits at the time of retirement. It is like a savings account in which you put a part of your money right from your paycheck. The good thing is you don’t have to pay any taxes now for this amount but you’ll have to pay it once you retire. And, the post-retirement income would obviously be less and hence you will end up paying less tax.

What are its benefits?

  • Tax benefits
  • Flexible choices for investments
  • Employer’s contribution (Employer match)
  • Manage loans and hardship withdrawals
  • Portable

Have you heard about Roth 401(k)?

It is more or less similar to normal 401(k) plan but the main difference is that you will have to pay the taxes yearly. However, on a positive note, you don’t owe anything to the bank at the time of retirement. All the money saved in your account can be taken as such once you retire.

What happens to your money once you put it in the 401(k) account?

A 401(k) might seem like normal savings account on the outskirts but is not. One of the best things about saving your money in 401(k) account is that you can decide from the options given by your company on what should happen to your money. In general, the options offered are:
  • The safe option: Keep the money safe in your account and get a steady return (small returns).
  • More volatile and risky option: Invest in stocks or real estate and grab good returns.
  • The mediocre option: Invest in bonds and get returns.
  • Try a small hand in all!
When you see lots of options, chances are you might be unsure about which one to choose. The risk factor might be the main criteria to choose when it comes to huge chunks of investment and there are chances to lose all of it. Once you have saved a good amount, the thought of losing it in stocks might be a nightmare. “Life is all about taking risks. If you never take a risk, you will never achieve your dreams.”~Unknown But before you jump into conclusion, keep in mind that more the number of years for your retirement, the more time you have to take the risk. However, you will have enough time to recover your loses(if any). On the positive outlook, you can have enormous gains in these years. Whether to invest more or less (short-term or long-term) depends on the number of years left for your retirement.

How about the mix of investment options?

Have you heard about something called “Target-date retirement funds”? This is an incredible option when you’re not much sure of right investment option for you and you don’t want to put all your hard-earned money at stake. What is target-date retirement fund? The target-date retirement fund is a combination of all possible investment options such as stocks, bonds, real-estates and cash. There are other potential options as well such as international stocks, save in foreign currency, precious metals etc. Initially, it starts with stocks then moves to less risky options like bonds to no-risk options of cash with the time of retirement. The below table gives you a better idea of how target-date retirement fund works:
S No. Time left for retirement       Risk Type of investment
1 20 years or more Most risky Stocks
2 10 years risky Bonds/ real estate
3 5 years No-risk cash
 

What if you don’t have a 401(k) option?

 If in case, 401(k) plan is not available to you then you have the opportunity to set a similar option where you put your money in the account and withdraw it in retirement. There are lots of investment firms that help you to set up a program similar to 401(k) and open an individual retirement account (IRA).  Here, the amount does come from your paycheck instead it comes from your checking account.

Utilize the employer match funds!

If your employer offers a matching fund with the 401(k) plan, don’t miss it for any reason. Sometimes, the employer contributes the same % of funds as you (10%- you & 10% – your employer) and thus there is already twice the amount saved in your account for your retirement.

Summing up

401(k) is ideally a wise move and if your employer offers that along with matching fund, then not taking it up would be the foolish thing to do. Once you retire, the money in your 401(k) account would serve as the income along with your social security check. Hope this guide helped you to understand 401(k) in a better way.]]>

Why You Should Invest For Your Retirement?

One of the most daunting financial challenges a person faces is ensuring that the savings built during his/her career will support him/her through retirement. However, it does not have to be that hard. You can plan well in advance and have a hassle-free retirement. The thumb rule to follow is set a budget and self-fund your retirement. But how to do it?

The basic idea behind budgeting is to create a plan on how to spend money and determining in advance how much money will be sufficient to do the things one needs to do or would like to do.

Why You Should Invest For Your Retirement?

Let us start by making your worries fly away. Before you set a budget, let us see the common mistakes that we incur during the planning stage.

Retirement Planning Mistake #1: Living Too Large

The first question one needs to keep in mind while creating their retirement plan is, ‘how much income do I need to maintain my current lifestyle in retirement?’   Not surprisingly, the vast majority doesn’t know the answer to this question or they’ve made an inaccurate assumption. Living too large might be vulnerable if you don’t plan for your retirement.

Studies show that we need about 80% of our current annual income in retirement. Things to note is that in general, retirees spend more on travel, entertainment and eating out especially earlier on in retirement when they have the time and good health to enjoy those activities. But in their later years, the main thing that plays a role in the healthcare and the cost can escalate.

Although it is important to make some assumptions, so as to have a pretty good estimate of how much you’ll need to save.

Retirement Planning Mistake #2: Disregarding Higher Health Care Costs

One of the most overlooked areas of retirement planning is estimating what health care costs could be in retirement, and including this in the calculation of income needs.

Fidelity estimated that a 65-year-old couple retiring in 2016 will need an estimated $260,000 to cover health care costs in retirement, according to Fidelity’s Retiree Health Care Cost Estimate. This is a six percent increase over last year’s estimate of $245,000 and the highest estimate since calculations began in 2002.

Retirement Planning Mistake #3: No Long-Term Care Plan

Anyone who has cared for an ageing parent knows first-hand the toll it can take on their loved ones and their savings. Both the time and money needed to give quality care can be staggering.

Check out all possible long-term care options and how you need to plan to pay for these future expenses if you need to.

Experts suggest that it is wise to plan for your retirement from the day you start earning.

Let us glance through seven rules of retirement planning advocated by experts for decades:

Rule 1: List down your financial goals

Your spending choices depend on your financial goal, so be wise enough to set realistic goals. A question you need to ask yourself before you set goals: One year down the line, what should be your financial status and achievements? List down your answer and decide your priorities.

Rule 2: Know your income and expenses

You probably know how much you earn each month but have you wondered where it all goes? Find out by tracking what you are spending. Spend as you normally would, but for a few weeks, jot down every cent you spend. It’s easy and you might be amazed by what you find out.

Rule 3: Categorize your needs and wants

Before you set your feet to buy anything, ask yourself -Do I really want this or do I even need it? If it is not something that is necessary at this point of time, then skip it. When you spend on something, ask yourself if it takes you closer to your financial goals or further away?

Rule 4: What’s your budget?

Ensure that you don’t end up spending more than you make. A good balance in your budget can help you save more. Your budget should accommodate everything you need to pay for like monthly bills, groceries, rentals etc.

Rule 5: List, plan and act

Your spending should match the time when you receive your income. Plan in advance how you would utilize your paycheques and pay according to your list. List down your necessities and allocate money for housing, food, utilities, transportation, etc. Also, track down your debt payments, unexpected expenses, savings, and the fun stuff.

Rule 6: Seasonal Expenses

Sometimes things crop up suddenly and if you don’t prepare in advance you might end-up in trouble. Things like school expenses, new shoes or an annual membership etc. that might require you to set money aside to pay for these expenses without going into debt.

Rule 7: Plan ahead to save more

Planning a budget and live with it can take a month or two to just fit in. All of a sudden, you cannot bind yourself to a budget, so give yourself some time to gel.

Summing up

Planning your retirement is an essential step if you want to be merry and enjoy your retirement phase. Once you have saved enough for your retirement do not think of taking money out of your retirement savings until you retire. Lastly, there is no one size fits all approach to retirement planning. Most resources tell you to save a lot and invest wisely but it all depends on how well you follow it.

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Financial Planning for Retirement

Financial security in retirement is not at all easy to achieve. It requires planning and commitment to lead a safe life ahead. Most of the people are prone to look at retirement as the finish line of their life where financial planning is unnecessary.

All you need to give yourself plenty of time to make a correct decision before making a financial planning for retirement. The retirees need to have a clear conception about how to plan their finance after retirement.

Financial Planning for Retirement

Here are some easy tips for you to build a safe and secure smart retirement planning.

Identify your Income Streams:

In order to gain a full benefit of the retirement years, try to estimate the exact amount of pension which you will be getting after the retirement. Knowing all other sources of income might help you to build an effective financial planning. This can be a bit tricky, so take your time to discover all the sources of money for securing your retirement. If you have a pension or annuity, get a solid idea of your income from that.

There are a few retirement facts, which can easily be witnessed among the Americans.

  • Fewer than half of the Americans have a clear conception about how much they need to save for the retirement.
  • According to a survey, the average Americans spend more or less 20 years in retirement.

Determine your Retirement Needs:

Once you have an idea of what your pension will be, you can easily formulate a plan according to that. Experts say that you will need 70-80% of your pre-retirement income to enjoy the same standard of living after the retirement.

Thus, retirement can actually be expensive. The key to having a secure retirement lies in your smart planning strategy. Try to keep a track of your monthly expenses for taking the charge of your financial future. Maintaining a worksheet for your regular needs like telephone bills, fuel cost, entertainment and health-related costs, can help you to have a control over your expenses.

Systematic Withdrawals:

The best way to get benefited after retirement is saving the money in some reliable financial organization. Since you will not be able to get your money back from the annuity after it starts paying out, opt for putting your money in an investment account. The systematic withdrawal plan associated with the account works by instructing the investment company to allow a certain amount of money to meet your basic needs. In this process, you can have a full control over your money but you will not receive any guarantee of an annuity.

Steps for Enhancing your Financial Ability in Retirement:

Every single person would love to enjoy their years of retirement while knowing that their family is fully protected. Here are a few steps which can be taken by you for enhancing the chances of building a successful financial planning for retirement.

  • Set clear goals for your retirement.
  • Estimate your existing retirement savings.
  • Try to maximize your post-tax income in retirement.
  • Get along with the changing circumstances.
  • Try to form an investment strategy for fulfilling your needs.

Choose the investments that make up your pension with a self-invested personal pension (SIPP). At the time of taking your retirement benefits, it can also proffer tax efficiencies and flexibility.

Spend Smartly:

For securing your future in retirement, you need to act smartly when it comes to managing your expenses. Don’t forget that, the flow of money will not be the same for the retirees. Your situation can actually be changed along with your lifestyle after the retirement.

If you have already paid down your mortgage and have no other debt to repay, opt for spending your money wisely. Then the cost of living can only be determined by a few issues like- taxes, food, travel, entertainment, etc. However, if you have major debts to repay then try to lessen your expenditure on useless items.

Consult a Financial Planner:

A trustworthy financial planner can only help you to prepare for your retirement by avoiding all mistakes. The work of a planner consists of assessing your present financial condition and to develop a plan according to that.

Here are a few things which you need to check before hiring a financial planner.

  • Don’t forget to check the credentials and experience of the financial buyer.
  • Get referrals from friends or relatives.
  • Try to know whether he or she is a trusted member of the Certified Financial Planner Board of Standards.

There is no place for you to hesitate at the time of asking a few questions to your financial planner. Ask him whether he offers free consultation or not. Make a thorough research for finding a reliable planner to deal with your whole life’s saving.

Retiring on time and leading a healthy lifestyle is not at all two contradictory goals for you to reach. Wisely choose your financial adviser, who would be willing to carry out your wishes. With the help of the above-mentioned methods, it would be easier for you to proceed towards having a well-balanced retirement without being worried about the money.

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