Retirement is a time when you want to live your life at your own pace, enjoying it. It is a time when you won’t have to wake up early and rush to the office or worry about getting home in time. But how would you get by without earning?
It is a thought you should entertain while you are still young. If you believe that one should live his life at the moment, you should think again and look at the examples around you. You don’t want to spend your sunset years sitting in an assisted living home, do you?
So, it’s better to plan for your retirement in your golden years and hire a professional for retirement planning in Phoenix.
Factors To Consider for Retirement Planning
Please consider the following factors when planning for retirement:
How Much Would You Need?
Retirement planning should start by thinking about your post-retirement life. Who will be living with you? Will you shift to another smaller home, or will you live in the same place? Will you take any other vocation or want to spend your last years in peace? After you have considered everything, ascertain your retirement needs. It is estimated that you need 70-90 percent of your current standard of living. So, plan according to it.
Consider Your Spouse’s Retirement Plans
You must share your retirement planning with your spouse. It is essential because your retirement needs might differ from your spouse. How? What if they already have an investment plan and retirement benefits are included? So, discuss and figure out how much you will need and how your retirement benefits will pay and help you.
Identify Your Risk Tolerance
Risk tolerance is your ability to take risks while investing. You can be a risk-taker when you are young, but this should be toned down with time. In your twenties, you can take risks as you have time on your hands to manage them, but as your age and responsibilities increase, the time to save enough and manage everything decreases.
So, consider your age and relevant risk tolerance before starting retirement planning. It is advised that you should start retirement planning in your twenties, or even earlier, instead of your forties. It will help you build a sufficient retirement fund to spend your retirement peacefully and worry-free.
Income Sources After Retirement
After retirement, the biggest challenge is that you will not receive any salary. So, how are you going to survive? Are you planning on renting out your home? Does your organization have a pension plan? Are you planning on taking up a hobby and making money? If you have any idea or plan, you should consider it. Based on your retirement planning, if your retirement benefits are not enough, you will need alternative sources of income. So, do consider your income sources after retirement.
Consider Basic Investment Principles
Saving money isn’t as easy as it sounds, and putting money in a savings account should not even be called saving because you receive minimal interest, which is negligible when considering inflation and taxes. The time value of money also plays a considerable role since the value of money you invest today shall decrease in the future, owing to inflation. Then, there are taxes. Not every investment is tax-free. Your present tax bracket also impacts your per month saving today. An IRA account is helpful, as you can take advantage of tax deferment.
Also, do not invest all of your money in the same type of investment. If things go south, you will lose everything. It is a general and most important investing principle that you must diversify your investments to protect yourself from losses.
Try to Settle all Your Debt Before Retirement
A debt-free retirement is the best retirement. You can pay off the debts when you retire, but your retirement is uncertain unless you have an effective annuity retirement policy in place. To enjoy a peaceful post-retirement life, plan to pay off your debt during the pre-retirement period.
Consider Your Social Security Retirement Benefits
Social security retirement benefits are government support that replaces a percent of your pre-retirement income when you stop working or work for reduced hours. It is a support benefit to help you get through, but it is only a small portion of your pre-retirement (likely 40 percent), so you better do retirement planning in Phoenix, AZ.
Hiring a Retirement Planner
The best time to hire a retirement planner is in your twenties. They can suggest multiple options, which will only cost a meager amount of your income if you start early. Hiring a retirement planner is one of the essential steps to achieving a stress-free retirement and truly living in your Golden Years.
Discuss your Retirement Planning Needs with Us
Heroes Financial Group is trusted for all your insurance and maximized retirement planning needs. We have the best consultants and strategists, who can understand your needs and help you get the best retirement plan in Phoenix. Other than this, we also provide wealth management, insurance, financial planning, etc.
Contact us to plan a secure future today!