Here are some retirement planning tips that should be kept in mind when planning your retirement.
Remember that retirement is very likely to be a major chunk of your life.
"When a man retires, his wife gets twice the husband but only half the income" ~ the golfer Chi Chi Rodriguez
Retirement Planning Tips – The Plan
- Have a complete retirement plan and keep it updated. Begin as early as you can and set clear short term and long term goals.
- Regularly review your plan progress at least annually.
- It is never too early to start planning for retirement.
- To insure that you are properly prepared one should do least as much preparation for retirement as you did for your career.
- Always remember it's your plan and you are going to live it.
Retirement Planning Tips – Finance
- It's never too early to start saving – the earlier the better.
- Diversify your investments . Understand them, their returns and their risk.
- Maximise the benefits from your employers pension or retirement plan.
- Don't EVER touch your retirement savings. In doing your financial planning you should have both long-term and short term savings. Long-term savings should be off limits for everything except retirement finance Use your short term savings for emergencies or short falls.
- Take advantage of all tax sheltered retirement saving schemes. The deferred tax will be reinvested and compounded to your advantage. Be aware that deferred means that it will have to be paid later.
- Understand that retirement is probably going to be the biggest liability you'll face in your life. The cash flow is negative – much going out and not much coming in. To prepare for this you need to have assets to match this liability.
- Financial security doesn't just happen ask questions and get advice. Make sure you understand the advice you are getting.
- Search web sites and other sources to achieve optimum returns for your investments, relating return to risk.
- Be on guard for investment scams. The simple rule is “if anything looks too good to be true, it is”. You are less likely to fall for these if you have a managed financial plan.
- If you are likely to have a sizable estate consider the advantages of using a trust for estate planning.
- Don't stop investing money when retirement begins.
- Be conservative when estimating – estimate investment returns on the low side and estimate inflation on the high side.
- Seek the assistance of a professional financial advisor. (another tip; appoint them with care)
Retirement Planning Tips – Lifestyle
- Be creative. Dream big. Your retirement will be your opportunity to really start living.
- Avoid having preconceived ideas or being influenced by other people's fears and doubts.
- Eliminate all debt well before retirement – starting today!
- Prepare a monthly budget and stick to it.
- Eliminate all unnecessary expenses.
- Delay retirement if necessary. It's not as as bad as having to repeat a year at school … even if you think you've failed no one else will know!
- Prepare a will and keep it up to date. It'll make life easier for those left behind when you are gone.
The more you consider these retirement planning tips and the more effort you put into your planning the more you'll benefit.
Ongoing goal setting and focus will be a critical part of your successful retirement.
One program that I've found helped me with my life planning, setting goals and keeping focused is simple•ology - it is simple but it works.
If you have any queries or concerns about it please contact me.