Planning for a successful retirement involves the consideration of numerous issues. Financial planning is, of course, a number one concern, especially with the economy spiraling downward and the prospect of a prosperous economy being years down the road. Giving some thought to the golden years and making some decisions early in life can certainly ease overall stress when the time to retire arrives.
Financial Planning
The importance of financial planning cannot be understated, and depending totally on Social Security for income is not very realistic or responsible. Most banks offer long-term saving accounts called Individual Retirement Accounts. The annual total deposit amount is dependent upon the total annual amount of earned income. Two types of IRAs are available, the Traditional IRA and the Roth IRA. Both have tax advantages; consider the benefits of each type before deciding which plan will be more beneficial to an individual long-term financial goal.
Keeping one’s savings and investments safe is also a major concern. Assuring that funds are federally insured by the FDIC is imperative, especially in light of the recent financial institution failures. As well, Savings Bonds and Treasury Bills do not always return the highest rate of interest, but they are a safe investment to meet long range goals.
Investing in a company’s 401K plan is also a wise investment. It is important to note that the total amount of an employee’s savings should never be in only one investment. A financial portfolio should include many types of savings plans.
For the individual who has the resources to be a bit more speculative, mutual funds and stock trading can be lucrative; however, there is always a risk involved. Investment companies also offer assistance from professional financial planners. Do some homework and verify the company’s solvency. In a flourishing economy, the risk is lower, but when considering these types of investments, read the fine print carefully for applicable fees and service charges.
The key to successful financial planning is to diversify assets, never deposit a total of funds in one financial institution or one type of account.
Retirement Location
As we age, health problems frequently play a part in deciding on a location for the retirement years. Arthritis, breathing problems, and other ailments may be less symptomatic in one particular area of the country. Many singles and couples live in one area of the country for part of the year and migrate to another for the remainder of the year. The availability to see children and grandchildren should be considered in this decision. Accessible funds will also play a vital part in being able to accomplish this goal.
Beating the Boredom
After working for decades, it can be shock to have that lifelong routine suddenly disappear. Sitting home watching television can lead to health problems and depression. Retirement years should be enjoyable; if one has prepared, funds will be available for travel.
Of course, traveling year around is not a very logical option for everyone. Days can also be filled with creating crafts, pursuing hobbies, fishing, golfing, senior center activities and volunteering for local charities. Keeping active and feeling needed are critical to maintain physical health and personal gratification.
Many seniors also enroll in educational classes, not only to learn about a subject of interest, but to socialize.
If funds are low, seniors can always find part time employment. Local labor agencies and senior centers will generally list appropriate jobs for retired citizens.
In Conclusion
Retirement age sneaks up on us all quickly. By creating a plan early in life, financial stress will be eased, so the remaining years can be devoted to fulfilling life-long dreams.