Concepts of Retirement Planning

 Retirement   planning  is becoming more important than ever before beause of several powerful societal forces. People are living longer after  retirement , with fewer defined benefit pension  plans , the trend toward multiple job and even career changes, and rising health care costs. Added together this all makes  planning  for  retirement  more critical now than ever before.

Regardless of your age, where you work or your life situation, you should start  planning  for your  retirement  as soon as you can, immediately if possible.  Retirement   planning  can be argueably more critical than saving for a childs college tuititon. They can borrow for college, you can’t borrow for  retirement  expenses. By beginning to  plan  now, you can take steps toward the  retirement  income you want and possibly need.

 Retirement   planning  involves identifying what you want and what you need. Then developing a  plan  to achieve them, acting on this  plan , reviewing and revising your  plan  as the  retirement  years approach.

Ask yourself these questions:

1. When do I intend to retire?

2. When I retire, will I start a new part-time career?

3. How long after I retire do I think my money will need to last?

4. How much money will it take to support my household?

5. What do envision my lifestyle during  retirement  to be like? Days spent golfing, traveling the world? Staying home and puttering?

6. Where will I live when I retire?

When you know where you’re going, it’s time to figure out how to get there. Through  retirement   planning , you’ll answer questions like this:

1. What do I need to do to take care of my health care needs during  retirement  years?

2. How much money do I need to save to meet my goals?

3. How should I invest my money to maximize my  retirement  savings?

4. In what way will my assets, liabilities, expenses and savings change during  retirement ?

The sooner you start to save and  plan  for your  retirement  years, the more prepared you will be. The power of compounding means that with early  planning  a small investment each year could potentially create a portfolio large enough to meet your  retirement  needs.

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