djamal-soft
الأحد، 12 يناير 2014
People make mistakes and from time to time we might learn from them presuming it's not too late. If you find a pretty serious planning error after you have collected your last check, your retirement years are likely to suffer. Luckily , forewarned is forearmed, which means becoming educated about common retirement mistakes will help you avoid them in the future.
It's a mistake to defer retirement planning:
In the opinion of the Employee Benefits Research Institute, 60% of today's employees have not figured out how much they'll need to save for their retirement needs which is the 1st step in retirement planning. It is a rather complex process, and the assistance of a financial planner can be useful when creating a step by step plan that will take you to your goal. Take time to review asset allocation, monitor investment performance, and make changes as needed. Though it may not be convenient, failing to plan will lead on to missed opportunities, lost tax advantages , and less than golden retirement years.
It is a mistake to believe your savings are safe:
In the past, finance advisers regularly told their senior clients to put 60% of their savings in bonds and 40% in stocks, with a switch to 80% bonds upon retirement. Their logic was to shelter pension savings by reducing investment risk. With longer life expectancies, many view this information as invalid. Inflation, growing faster than the modest returns of supposed safe investments, will ultimately eat away at your savings and cut back your purchasing power.
Today counsellors advocate keeping the capability for growth in your portfolio up to and through retirement. A mix of products which will earn you a real rate of return after inflation and taxes should increase your purchasing power over a period of time or at a minimum keep it steady while still reducing risk. Balance should be sought between investment security and ensuring you have plenty of savings throughout your retirement.
It's a mistake to be excessively generous:
If you're among the fortunate few that assume that they have masses of retirement savings, you could be inclinded to share your wealth with your family before you retire. While your kids will certainly value a paid trip through university or your help purchasing their first house, giving away assets now can put you in a difficult spot later on. No one knows with certainty what the future holds. You will live for longer than anticipated. You'll need pricey long-term medical care. If you've been too liberal with your savings, you might find yourself without. Always take the long view whenever utilizing your savings and be mindful of the unforeseeable future.
It's a mistake to put down your financial position needs:
Will you actually spend considerably less than you do now during your retirement years? In the past, a rough guide among planners was to expect post-retirement outlays to be about 80 percent of your current ones. But this is not always so. While you may not be commuting to the office every day, or spending cash on work lunches, travel and leisure activities can cost even more. And, certain expenses like life insurance, health-care premiums, and co-payments are likely to become more expensive. Also, Medicare does not cover things like dental, vision, hearing or skilled nursing expenses.
As you contemplate what you need for retirement, your future is at stake from your happiness to your monetary security. Avoiding mistakes will help you create a brighter future. Spend the time to discuss your current position with a fee based certified financial planner ensuring they earn no commissions on their information or selling you investment products. Also be certain to put some of your savings to work using info and education like what's offered bySummerland Associates to help you fulfil your ambitions. Making these tiny changes promptly will offer large rewards in your retirement years.
It's a mistake to defer retirement planning:
In the opinion of the Employee Benefits Research Institute, 60% of today's employees have not figured out how much they'll need to save for their retirement needs which is the 1st step in retirement planning. It is a rather complex process, and the assistance of a financial planner can be useful when creating a step by step plan that will take you to your goal. Take time to review asset allocation, monitor investment performance, and make changes as needed. Though it may not be convenient, failing to plan will lead on to missed opportunities, lost tax advantages , and less than golden retirement years.
It is a mistake to believe your savings are safe:
In the past, finance advisers regularly told their senior clients to put 60% of their savings in bonds and 40% in stocks, with a switch to 80% bonds upon retirement. Their logic was to shelter pension savings by reducing investment risk. With longer life expectancies, many view this information as invalid. Inflation, growing faster than the modest returns of supposed safe investments, will ultimately eat away at your savings and cut back your purchasing power.
Today counsellors advocate keeping the capability for growth in your portfolio up to and through retirement. A mix of products which will earn you a real rate of return after inflation and taxes should increase your purchasing power over a period of time or at a minimum keep it steady while still reducing risk. Balance should be sought between investment security and ensuring you have plenty of savings throughout your retirement.
It's a mistake to be excessively generous:
If you're among the fortunate few that assume that they have masses of retirement savings, you could be inclinded to share your wealth with your family before you retire. While your kids will certainly value a paid trip through university or your help purchasing their first house, giving away assets now can put you in a difficult spot later on. No one knows with certainty what the future holds. You will live for longer than anticipated. You'll need pricey long-term medical care. If you've been too liberal with your savings, you might find yourself without. Always take the long view whenever utilizing your savings and be mindful of the unforeseeable future.
It's a mistake to put down your financial position needs:
Will you actually spend considerably less than you do now during your retirement years? In the past, a rough guide among planners was to expect post-retirement outlays to be about 80 percent of your current ones. But this is not always so. While you may not be commuting to the office every day, or spending cash on work lunches, travel and leisure activities can cost even more. And, certain expenses like life insurance, health-care premiums, and co-payments are likely to become more expensive. Also, Medicare does not cover things like dental, vision, hearing or skilled nursing expenses.
As you contemplate what you need for retirement, your future is at stake from your happiness to your monetary security. Avoiding mistakes will help you create a brighter future. Spend the time to discuss your current position with a fee based certified financial planner ensuring they earn no commissions on their information or selling you investment products. Also be certain to put some of your savings to work using info and education like what's offered bySummerland Associates to help you fulfil your ambitions. Making these tiny changes promptly will offer large rewards in your retirement years.
About the Author:
John A. Larsen, the Managing Director of Summerland Associates, LLC, has worked in financial services for 20+ years starting in banking. John has held Series 7, 63, and insurance licenses working with high net worth clients to craft better portfolios. John has spent the last 10+ years refining advanced investment ideas into a series of applied strategies that drive the Summerland Alerts. More articles can be found on Summerland Associates website or thru Wealth Building Ideas, published for iPads.
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