5 Tips for Successful Retirement Financial Planning

5 Tips for Successful Retirement Financial Planning
  • Opening Intro -

    As it is today, we live in a culture that believes in living in the moment.

    We often fail to recognize the need for planning for the future.

    We all desire to live the American dream.

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This vision includes financial stability after retirement. However, many of us do not come to terms with the harsh reality of life after retirement. Piling medical bills and little state support, which translate into lower living standards.

Saving for retirement is the best investment you make. It’s therefore crucial to start getting your retirement finances in order now. That is, Iif you wish to enjoy your time after you stop working. Here are some tips to help you develop a successful retirement financial plan.

1. Know your current financial situation.

You cannot plan for the future with an unclear present. Some may have reliable employment currently with monthly income. For others, their financial future faces threats from bad career choices, unemployment, and debt. Knowing how much you are making now helps estimate how much you can save for the future.

2. Seek professional help with financial planning.

Many people have retirement saving plans such as IRA or 401K. There are also other retirement benefits from Social Security and pension plans. We have to realize that these aren’t sufficient for the future. Most employers contribute as much as is allowed by the law, not what is good for you. To be able to know the faults of your current retirement savings plan, consult a lawyer specialized in retirement plans. Also, see a financial consultant to help with retirement estimates.

3. Estimate your expenses after retirement.

Having a retirement financial plan requires you to set goals on how much you’ll spend each year after you stop working. To make your plan successful, know where you’ll be spending money after retirement. You could use your current expenses to compare with the expected future costs. However, consider the changes. For example, entertainment expenses are expected to increase. While expenses such as taxes and utilities will decrease after retiring. To make the estimates easier, you could use an online calculating software.

4. Assess your financial readiness.

Having consulted a financial analyst and estimated the expenses, determine your readiness for retirement. Use an online retirement calculator to know how ready you are for retirement. From assessing, you can know what measures to take. These measures may be contributing more to your retirement plan or taking out an insurance policy.

5. Always factor in the unknowns.

Life, as we know, isn’t constant (except for change), and planning for the future involves many uncertainties. The retirement calculators give simple outputs and do not incorporate unknowns. These include inflation, one’s life span, and investment returns. Inflation brings changes to the cost of living, and when financially planning for retirement, I’d advise you work with an inflation rate of 3%-4%. To determine your life span estimate how long you plan to spend in retirement. As for investment returns, do enough research so as to get an accurate percentage to work with.

Follow these tips and begin saving towards a better life for retirement. Share the article with as many people as possible to help them improve their financial investments.

Retirement Planning reference:

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Last update on 2017-05-26 / Affiliate links / Images from Amazon Product Advertising API

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