Picture a rickety rocking chair holding a rickety old lady, in a dusty basement suite. You are old and gray and spend your days knitting, crocheting and doing needlepoint. You don’t go out much these days, you can’t afford to. This is, sadly, the perception of retirement too many of us have. Retirement, like death, comes to all of us, eventually, and whether we are ready for it or not. Procrastination is common place for soon-to-be retirees. Call it denial, we fight old age with everything we’ve got.
That picture could be much different if we start to plan our retirement early. Moving into your retirement years doesn’t have to be a death sentence and investing wisely could significantly increase your chances of having a happy retirement.
Good investment and planning requires sound advise from your financial planner. Asking smart questions is the only way to get the information you need to start planning your retirement or rather, your future. Consider the following questions:
1) How much will I need to retire comfortably? It is estimated that retirees need about 75% of their salary to be comfortable. Your financial advisor will be able to answer these questions based on an assessment of your current status.
2) How much should I contribute now and how often?
3) In what ways can I get income from my assets?
4) What is re-balancing?
5) What happens to my retirement portfolio if there is a slump in the market?
6) How soon can I retire?
7) What are the pros and cons of retiring early?
8) Which retirement plan or combinations of plan should I choose?, Annuity, 401(k).
9) Which plans would give me the best returns?
10)How much will I pay in fees?
Answers to these questions will depend on the assessment of your particular circumstances done by your financial adviser. Do not hesitate to ask the tough questions – your retirement is your future and your responsibility.
Now picture yourself on a beach in Hawaii, feel the ocean waves gently rolling over your bare feet, you are having too much fun to crochet. Ah! the joys of retirement!