Plans for a profitable retirement
2nd December: Living in an unsettled economy, many of us may be compelled to feel the significance of planning for a profitable retirement.
So, the question that often pops up in many minds is how and where to put our resources so that we are ensured of a respectable living during retirement. Lets see how to reduce the element of risk while maximizing our income—
Change in investment concept–The traditional thinking was to make huge investments in bonds as one reaches his or her retirement age.
However, the concept has undergone a change, as of now. Living in an age marred by financial instabilities and high rates of inflation, investment in bonds is certainly not a profitable venture and is not going to churn out good income for a profitable retirement.
Begin early—Many times, investors are quite late while initiating their plans for a profitable retirement. So, the good thing is to make an early start. That’s because the longer the investment period, the greater is the profit for the retiree.
Seeking advice from a financial expert—Since retirement planning requires great involvement, hence, you can always seek the services and guidance of a financial expert to convert your retirement into an enjoyable period.
Set aside money for your retirement—Discipline is the key to success and this holds good even for investment for your retirement. You need to keep aside finances for your retirement. And don’t take out money saved for retirement even if you are faced with a tough financial state.
And if you do use this amount, make sure to put such money back into the savings at the earliest.
Diversification of portfolio—Diversifying your investment portfolio is the need of the hour. By diversification, we mean investment in varied funds so that there is no duplication in terms of firms held within the funds. Only such a decision can strike a right balance between return and risk.
Some other considerations for ensuring financial freedom during retirement—
• Make investments to cover a long span of your retirement age.
• Go for a diversified investment portfolio to ensure limited risk and higher returns.
• Its advisable to spend non-IRA money before spending IRA money to keep your assets preserved for long time. Reason being that doing so will not make you liable for federal tax payments.
• Don’t forget to make investment in long-term insurance for your health. It will help in keeping your retirement savings intact in case you fall ill.