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4 Steps For Financial Readiness Upon Retirement

When the stress levels at work are unbearable, it’s easy to shout “that’s it, I’m retiring!”. Then you daydream of what you would do if you did not have to work – head to Thailand and drink Mai Tais all day, play golf, watch movies in the middle of the day, etc. But are you financially ready to retire? Did you know that only 4% of Americans have enough capital stashed away for a comfortable retirement? Freak not, you can be part of that 4% if you follow these steps:

Step #1 – Evaluate

Thanks to modern medicine, people live longer today. Longevity is one of the essential factors when planning for retirement. Underestimation can cause people to save too little, retire too early, and spend too much. To complicate matters, retiring early is now becoming the trend. With that in mind, take a look at your life and see where you are right now. Are you a millenial who is looking to the future? Good for you, it’s never to early to plan for retirement. Are you about to retire in a few years?
Whatever stage of life you are, take a critical look at your assets and liabilities. Look at your savings, social security benefits, 401K and other assets. Consider your liabilities too. Will you still be paying for your home long after you retire? List all these down for easy reference.

Step #2 – Set a realistic retirement budget

Once you know where you are right now, the next step is to determine what your future looks like. What do want to do if you did not have to work? Be realistic. You may want to travel for the rest of your life, but if your health is not great, then you may have to scale back your plans. Be honest with yourself. And more importantly, be realistic. Draw up a budget based on your plans. Most people think that their expenses will be less when they retire. But remember, you will have more time to while away. What are you going to do with it?

Step #3 – Streamline your finances

After taking the steps above, you should know by now your financial goals for a happy retirement. Start planning for your retirement NOW. If you have not done so, you should have set aside an emergency fund, a retirement fund and your daily fund. Plan on paying off your all your mortgages before you retire. You should also have a buffer fund, or extra funds that you can dip into if your usual income stream falls short.

Step #4 – Optimize your investments

Even if you have set up all the required funds, you cannot sit back and just wait for the day to come. You have to continue learning how to optimize your current income so that your investments will grow. New and better options will come, so you should always on your toes and jump at every opportunity. It’s better to be over-prepared when it comes to retirement.

Getting ready to retire is an ongoing process. There is no one way to do it. The key is preparation. Make a plan now and stick to it so that you can have a stress-free retirement.

Start Your Financial Retirement Planning

Don’t get paranoid. I know many of my colleagues who are still building castles in the air on how they will start getting ready for their retirement. Always nice plans but too much sugar coated because they think it is too early.

Time is now. Don’t be fooled by general theories or rule of the thumb that only old guys are the ones responsible for this journey. No, actually it is the end journey of our careers and no one knows what tomorrow holds since market changes are inevitable.

Retirement is not equal to going home and resting. Don’t be excited by the micro achievements of quitting the daily office pressures and thinking now is resting life style. Go home and design a future for your generation.

>>>Who needs the retirement game plan?>>>

You or me? All of us. The earlier the better to start preparation for the rains because by the end of the planting seasons, you only reap what you soar.

If wishes were horses, beggers would ride. The following financial tips listed down as you proceed down to scrolling, contains guidelines for our retirement road map regardless of age as a factor:

f) Run side business; don’t put your eggs in one basket and forgot to invest on the risk management. Just to be certain you land on your feet by the time you are resting your case, let your money work for your by starting a side business either as partnership deal or sole proprietor.

e) Separate assets vs liability; learn to be knowledgeable about assets and liabilities because this will groom your financial discipline and spend with a lot of consideration.

d) Tick up your savings; your savings mean the better future for your family because soon the kids shall have joined college or graduated so is profitable to save.

c) Investment on assets of appreciation; buy lands now so that in future your family will have a spacious home or likewise you can put some businesses on those lands to generate more income.

b) Cut your niche/ pick appropriate life style; don’t follow the crowd because it is adequately profitable to cut your court according to your size.

a) Accumulate your wealth; learn how to redeem your hardwork and keep your family at a warm place when you retire.

>>>Final Remark>>>

Retirement road map is directly dependable with your financial game plan. Put your ears on the ground and invest on new opportunities like in stocks exchange markets just to avoid trying to put your head a above water after your retirement… End thought!

Why To Hire A Qualified Financial Advisor

A financial consultant or a financial planner is a person who helps you plan and manage your personal finances or business wealth in a profitable or sustainable way. You might be wondering why you need the financial planner in the first place. During these moments when commerce and finance are becoming so complex, the words and thinking of an advisor will be your most important assets. In the earlier years, if you had a major business and lots of personal wealth, it can be possible that your parents, or loved one, or relatives and friends will act as your advisor and help you manage your business assets.

Unfortunately, being economically independent these days is near impossible due to varied factors such as increasing prices of amenities and services, unstable economic system and limited financial resources.

Luckily, there are options that can help individuals improve their money. The best option is to work with a reputable financial advisor. Several individuals may feel that employing an expert in the budget is yet another additional burden in their funds. However, these experts can make sure that you can get the most out of your money. Here are reasons as to Why To Hire A Qualified Financial Advisor:

  1. Helps in managing your finances

Due to the financial problems individuals encounter, there are occasions when they can manage their finances. By making use of experts, you can manage your funds properly since advisors can make your money meet your needs exactly. Not to mention, experts can help you arranged a budget to make certain you have sufficient money to appeal to your preferences and also cut costs for your future.

  1. Help you protect your finances

Investing can be considered a good option to obtain more money. Some investments can certainly be a hole that can damage your savings. By coordinating with financial advisors, you can avoid these blunders. Experts can also help deal with your opportunities properly since they have vast experience how to protect your investments.

  1. Helps you to secure better future

By having a good plan from professional financial advisors, you can save finances for the future. Some advisors can even help you produce sure that your money can accommodate your changing needs, from becoming a married man or maybe preparing for your fantastic years.

  1. Assist you to enjoy your life

Simply by dealing with financial advisors, you can also enjoy your life since you do not need to be concerned about your finances. You can also be certain that you can reduce or even get rid of debts. And, you can acquire sufficient finances to enjoy an improved life.

With all these, individuals can surely enjoy a better lifestyle and financial stability, which can help them make their life more successful.


How To Estimate Retirement Income Needs

In order to assess what an individual will need to retire on, there are a few things that you have to be take into consideration . First, you must consider what you are spending at this very moment. Second, will you plan on traveling more or less during retirement? Third, do plan to change where you live during your retirement? It is these three factors that can drastically effect how much money you will need at this point in your life.

How Much Money You Spend Now

The reason one’s spending expenses are taken into account, not their income is simple. Just because someone makes a certain amount of money, does not mean they spend it all. Or it is the reverse case, in which you spend your entire pay check, and have no excess. In either case, it is important to try and save for your retirement, if you want a proper income to retire upon. Just avoid living above your means. Budgeting now will make a big difference if you really want a life after you retire.

Travel More Or Less

Traveling costs money so if you plan on spending more time traveling while retired, you will need the additional income. Make sure you factor this higher expense into saving more in your retirement fund. Those who do not travel currently, may have little knowledge of just how much extra income it will require so it is important to do your research – it will be your best friend. Everything cost money. The gas that runs your car cost money. Even all those routine car check-ups begin to add up. When you retire, this is a travel expense you can now use towards a different type of travel.

Will Your Housing Change?

By the time you retire, depending on your current age, your mortgage should be paid off. You can use the money you have been paying the mortgage with towards your retirement income. If you are still renting an apartment, you will save more by purchasing your own home. This is because, that home can be sold upon retirement. If you choose to downsize after retirement, you can sell your more expensive home. All that extra income can then be put towards enjoying your life as a retired individual.