There comes a point in all of our lives when we either do not wish to work anymore on a regular basis or completely stop working altogether. Planning for this stage of life is probably the most important part of our financial portfolio.
While there was a time when most companies paid part of the retirement pension and Social Security covered for the expenses, that strategy simply does not work anymore.
The fiscal demands of modern life along with changed lifestyles mean individuals have to plan their own finances and save up adequately if they wish to have a comfortable retirement.
Here are 5 simple, yet essential tips that will help in this regard-
- Diversify your portfolio. This is an advice that most economist, financial advisors and bankers will tell you and it pays to listen to this simple tip. Do not put all your funds in a single investment plan as any market fluctuations to this sector will put your whole retirement plan in jeopardy. Stocks, bonds, mutual funds, ETFs and even gold, are all good options.
- Manage your home mortgage in a sensible fashion. Review the interest rates that you are paying on a regular basis. If you feel that they are falling quickly then go in for refinancing so that you can pay lower rates. It is essential to weigh up your assets and debts before chalking up a retirement plan. The idea is to obviously stay in the black.
- Take complete advantage of the retirement plan that your company offers. While most people who are just starting out in their careers tend to be averse to such an idea, one must consider contributing to it regularly. This is especially true in cases when companies match employee retirement fund contributions penny for penny. By turning down the offer you are just saying no to ‘free money + Interest’.
- Once you do approach retirement do not blow all the hard earned and saved up cash by going on a spending spree. Chalk up a good budget plan and stick to it. Add to this a long-term health care insurance and you are pretty much set for your happy years.
- Investment firms make huge amounts of money worldwide thanks to the investment fee that you pay. Cut down on the investment fee you need to pay by looking around. Having a professional personal pension advisor helps and companies like Highstreet Wealth Management offer these services for free to all their clients. Remember though, that financial planning is an essential part of your retirement year happiness, yet it is not the only aspect.