Retirement planning: 4 easy steps


For many, approaching retirement age can be frustrating and confusing. Many fail to get their finances right in order to enjoy life in retirement and so frustration takes root and weighs heavily on the person. At forty-five or fifty-five, very few are satisfied with what they have saved up for retirement. The list of regrets cannot end here. A lot can go wrong without an early start. Those well over forty and fifty will be left behind. Here are some practical and easy steps to really get into retirement planning if you are a professional, an entrepreneur, or just someone who cares about the future!

First, the lessons of life are learned through personal experience or through the experience of others. Smart people learn from the latter so as not to experience dire situations after retirement. The very first lesson you should learn about retirement planning is to start saving sooner rather than later. It’s not complicated, and you don’t have to be a financial guru either. With some willpower, guidelines, and knowledge, planning your retirement can be easy, convenient, and most importantly, happy.


Each paycheck should have about fifteen percent invested in retirement. It can be a savings account or a small side business that, if properly managed, can later become a trusted partner. Retirement goals are great, but if you have less of your income today, you can afford the expenses tomorrow! Forget about your employer’s retirement provision, your own gross income has to keep this percentage in some form for the golden years to come.

Recognize spending requirements

Being realistic about post-retirement spending can help you get a better idea of ​​what type of retirement portfolio to take on. For example, most people would argue that after retirement, their expenses would be seventy or eighty percent of what they were before. Assumptions can prove to be untrue or unrealistic, especially when mortgages have not been paid off or medical emergencies arise. So in order to better manage retirement plans, it is important to know exactly what to expect on the cost side!

Don’t keep all your eggs in one basket

This is the greatest risk a retiree can take. Putting all of the money in one place can be disastrous for obvious reasons and is almost never recommended for single-stock investments, for example. If it hits, it hits. If it doesn’t, it may never come back. However, mutual funds in large and easily recognizable new brands can be worthwhile when potential growth or aggressive growth, growth and income is seen. Smart investments are key here.

Stick to the plan

Nothing is risk free. Mutual funds or stocks, everything has its ups and downs, so there will be ups and downs. But if you leave it and add more, it will grow in the long run. After the 2008-09 stock market crash, studies have shown that workplace retirement savings were balanced at an average rate of over two hundred thousand. The average annual growth rate between 2004 and 2014 was fifteen percent.


Source by Syed Ali Zain-ul-Abideen