Planning For Retirement – Strategies For 2018
A famous adage says, “Money saved is money earned.” But, unfortunately, we fail to implement it in real life situations, a fact attested by recent research reports around the world. Saving money is very important for those who are planning to have a sound retirement income plan. As one approaches old age they are faced with lots of challenges and uncertainty.
Increasing health care costs and decreasing levels of social security benefits are only some of the problems that may arise. To top it all off there is this problem called inflation, which has become a growing menace in today’s consumerist economy where the market forces dictate everything. Inflation rates also keep on varying from region to region making it all the more difficult to devise a uniform strategy to combat inflation in your retirement years. Planning for retirement can be a daunting task for beginners. Saving money through a sound retirement income plan, therefore, has become all the more crucial in our current economy. If you’re looking for a way to plan your retirement better, check out this Canadian retirement income calculator.
Some points to take into account when planning for retirement
To have a financially viable retirement plan, it is very important to assess and address the mordant effects of inflation. There is also the need to address unwanted risks like rising healthcare costs. In the United States, a retiree who is now 65 years old will need to allocate $180,000 to meet his medical costs, a fact attested by reports of a premier research institute. So, it makes sense to invest wisely in medical insurances, which will take care of all medical woes in the long run.
A good retirement planning program also requires one to ensure a predictable stream of income that will keep on increasing over time. One can easily combat the collapse of assets by adopting a conservative withdrawal rate of 4 to 5%, proven by recent global surveys. Planning a sound retirement income plan also requires you to refrain from excessive withdrawals. One should withdraw only a specific sum of money from their retirement nest egg each year. This helps them to cope with the fluctuating returns that their personal savings account and investments are likely to generate over time.
Saving money wisely is key
Again, potential risk factors are also situation specific. Each risk will impact different individuals in different ways. There are several other risks that may haunt you post-retirement. But, with sound retirement solutions and money saving strategies you can easily lessen their impact and ensure long-term financial security in retirement. The bottom line, therefore, is to devise a realistic plan that will help you to keep all your retirement problems at bay.
With experienced financial professionals available at your command, choosing a financial advisor has never been easier. You can quickly get the best advice possible by putting in a little time and energy. The primary goal of devising a safe retirement program is to create a sustainable source of income that will benefit you in the long run. Saving money and adequately allocating funds in different arenas is the first step towards that. You can choose from two options: the conventional IRA or RRSP is a good choice based on your level of income and the retirement plan of your spouse. Tax may be deducted from your Traditional IRA or RRSP, and the earnings from the investment may grow tax-deferred as long as you don’t make a withdrawal during your retirement.Roth IRAs can be a great option if you can satisfy the requirements for income eligibility. If you want to find out the type of investment accounts that will be the best choice for you, you should consult an expert.
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