Based on years of experience in the employment field, and augmented by the inexhaustible sources of information from numerous resources, I offer you a review of RETIREMENT PLANNING that you can consider and compare against whatever retirement efforts you may have already undertaken. In this review, we'll identify the real advantages and details of sound retirement planning elements that many millions of employees and self-employed individuals rely on as a regular part of their workplace experience.
Those elements below will be in the form of questions and queries about your current status relating to the elements. Your answers will reveal how effecient, or not, your retirement planning has evolved. If your answers are lacking, then the questions themselves expose a map to implement a sound retirement strategy to fit your circumstances.
To start, lets consider PRIMARY ACTIONS one should consider for a secure retirement:
1. Create your individual retirement needs list.
2. Begin a step-by-step plan for reaching those retirement goals.
3. Assess your current assets.
4. Begin to build up savings.
5. Find good professional financial advisers
6. Learn about how to make the most of tax strategies
Let's look closer at what the government has to say about it; from the Pentagon Federal Credit Union: "Now more than ever before, Americans are changing employers, indeed careers, several times during their lifetime. To adequately prepare for your future, it is important for you to establish, and manage, your own retirement plan. With the secure days of drawing from a hefty pension plan from one company gone, you may find that you must rely on several sources of income during retirement. These sources may include a company pension, Social Security, investment income, savings, part-time work, the sale of assets, and others. The sooner you begin planning for and contributing to your retirement, the better off you will be. Only you can determine whether your retirement will be spent counting pennies or living life to its fullest."
Now, let's consider some SPECIFIC CONSIDERATIONS that will affect your retirement: For instance, at what age will you retire? Or... how many years do you have for creating retirement savings? The answers to those two questions help to form much of your retirement strategy.
Next, put the results down on paper - actually create a retirement worksheet from which you can refer to as you make your way through the other elements you should consider. There are some free resources that you can access to help you create such a worksheet. For instance, the Pentagon Federal Credit Union web site offer a retirement worksheet. Go to Google search and input the keywork-phrase "Planning your retirement." Resource Center: Planning for Your Retirement is typically the 7th or 8th link on the first page of search results. In that article, there is a link on the first page to the Retirement Planning Worksheet.
Some of the starting points to consider are: Your company's Retirement Plan and what it offers. Often your 401K IRA (usually with company matched contributions) will give you the most for your money. Contribute what you can afford.
Other company choice often include Annuities and Mutual Funds. If you don't have a company plan, or you're maxed on your contributions, you would do well to consider Annuities and Mutual Funds. Annuities feature fixed annual return rate, and are considered by many the most secure investment. Many insurance companies sponsor annuities. Mutual funds feature higher returns, but they are more volatile, therefore more risky. Many investment professionals consider Mutual funds in the same risk category as stocks. A good strategy for minimizing the risk when investing in mutual funds, is to spread any investment across a number of different funds. Both annuities and mutual funds pose some risk to your initial capital investment. You should always bear in mind, that financial risk is inherent in any investment venture.
Another choice is to set up an Individual Retirement Account (IRAs). Traditional IRA accounts are well known. Traditional IRAs are considered Low risk. To begin with, they are federally insured. IRAs also carry significant tax advantages. Another choice is a Roth IRA. Roth IRAs are available to many who do not qualify for Traditional IRA because of participation in a company retirement program or because of income considerations. You may contribute to a Roth IRA until age 70.
As you continue to consider your personal Retirement Plan, remember to assess your financial state. There are a number of factors to be considered in making that assessment. For example, the amount of money you have in your savings; your net worth; what Real estate you may own; your stock portfolio, if you own any stocks; Bonds; Insurance policies; Valued possessions; your combined Income totals.
Don't forget to establish your retirement goals. At what level do you want to live in retirement? Most folks require a 25-30 year budget for you total retirement dollars; but that doesn't fit all needs. Be specific and rational.
Another important step is to determine how you will manage your assets. Investment asset management falls basically into three categories: budgeting and growth and savings.
Budgeting. Your retirement must be as much a priority as food and bills. Financial considerations and decisions must be viewed from the perspective of the potential impact on your retirement.
Growth. With retirement security as a major driving force, active management of assets becomes important. Consider finding a personal financial adviser you trust.
Building Up Your Savings. Savings are the best "hedge" against the future - there's nothing like cold, hard cash. A savings plan is very helpful - For example, budgeting a certain amount from every paycheck to be deposited in your savings, and insuring that the deposits are made on a regular basis. Savings can also be a ready resource for further investing at any time.
Now let's consider: Finding Professional Financial Help. There are thousands of financial firms that cater to individuals. You should research, reliable, well-known firms and interview their people to find one you trust.
And what about creating customized Tax Strategies? Each of the avenues we've discussed has tax advantages and/or liabilities. The laws are many, and can be confusing. Consider an independent class on retirement planning to educate yourself, so you don't have to rely blindly on professionals who live on commissions for their advice.
Creating a Retirement Plan - Creating a Retirement Plan can be a daunting task. It can seriously impact the quality of your life in your golden years. Consider continuing education courses, to stay on top of strategies, trends and legislation that will impact your retirement investments. Such courses are offered through Community Colleges and online organizations (many offering Continuing Education Units).
By addressing the aspects of retirement planning and management reviewed herein, one can determine the value of their current retirement situation, or verify some alternative avenues for retirement that may fit a specific circumstance. Don't neglect your retirement or put it off till later in your career. There are choices available for all levels of income. The information reviewed here could help to start you on a path towards a secure retirement. Find out more about: retirement