Are you building a financial nest egg for the old person you’re going to become? Have you invested back into yourself? Here’s a staggering statistic that Only 21% of 30 to 40 aged individuals felt very confident in their ability to live comfortably throughout retirement.
Here’s a checklist of handy tools you should consider adding, oiling, or updating on a regular basis:
Eyeglasses or Crystal Ball
Retirement planning starts with a vision. Are you in your 20’s? It may be no be a clear understanding of what your going to need at the retirement age. Obviously, the closer you are, the more concise your vision should be. Don’t forget it’s not all about the $$$, retirement is about “What will you do”, “Where will you live”, can I Golf everyday, can I travel, but it also might just mean working in a different type of environment or for fewer hours.
Instead focus on building your own independent wealth by saving and investing on a regular basis, you might simply setting aside 10% specifically for retirement is a nice goal. If you’re Late to the “Retirement Savings” game, you may need to increase your monthly percentage that you MUST save.
Plan to allow for your recurring fixed expenses to be covered by guaranteed income. Guaranteed income could come in the form of military retirement, Social Security, pensions, or you could purchase your own guaranteed income in the form of an income annuity.
Do you have one? What’s yours look like? Have you built and maintained a diversified mix of equities (U.S., small/medium/large, foreign developed & emerging market stocks) and fixed income (all types of bonds, fixed annuities, cash and cash equivalents)? If not, add “evaluate my portfolio” to your to-do list and ensure what you’ve got matches up with your goals and targets that your going to feel you’ll need at retirement age.
The tax landscape is ever-changing, which makes it difficult, but critically important to keep this tool razor sharp. And for your retirement, your tax-diversification should be top of the list, not out of sight out of mind. That means saving and investing in a manner that allows you to benefit in the NOW, but also Tomorrow through building taxable, tax-free (Roth), and pre-tax investments.