6 RETIREMENT PLANNING TIPS
Retirement is supposed to be that time in your life when you can take it easy and do the things you enjoy. If you have planned for your retirement properly then you will have that time and freedom that working didn’t allow. These days with the cost of living many people are having to work well past retirement age just to maintain their lifestyle. Below are some tips, that if implemented early enough, can help make your retirement plans a reality.
Start saving for your retirement as early as possible. Obviously the sooner you begin saving for retirement, the better off you will be. Most financial institutions and financial planners can set up a direct deposit type of account, that can deduct a contribution from your pay or account when you get paid. As long as it is a manageable amount, you will barely even notice it and set up properly can defer income taxes.
Plan for the lifestyle you want when you retire. Everyone is different, and we all wan to do different thing when we retire. If you want to travel the world, you need to realize that this will cost a lot more than gardening or fishing. Once again, a financial planner can help you achieve these goals and tell you how much you need to be saving now.
Try to invest in a variety of things. We all know the stock market goes up and down, but in the long term it always goes up overall. With this type of investment it is best to put your money into a mutual fund where it is invested in a variety of safer options like banks etc.. Investing in just one stock can be risky even with large established companies – remember; Delta Airlines, Enron, WorldCom? Currently VW stock has dropped 30-40% in a very short time.
Plan to make your investments last. These days people are living longer and doing more. While nobody know how long they will live for, you should plan for this to some degree. If you have a hundred thousand dollars invested at 5%, you should minus the rate of inflation so as not to deplete your investment.
Keep working if need be. It is better to work at least part time, than to live in poverty. Many people enjoy the interaction of getting out and seeing other people as it is known to have huge psychological benefits
Access some of your homes equity. With the rising cost of living, more and more people are using the equity in their home to maintain their lifestyle. While this option is not for everyone, it can benefit many seniors who are struggling financially. Reverse mortgages can also be used to purchase a property in retirement. This allows you to purchase a property you could not normally afford and not have any mortgage payments. Food for thought!https://barriemortgagebroker.ca/6-retirement-planning-tips/