In a recent article, we listed the twelve deadly retirement mistakes commonly
made by many people.
In this article, we will
list ten of the best
ways to prepare for retirement.
1.
Pick a target date
for when you want to
retire.
2.
Make an estimate as
to how much money you
will need to accumulate
by the time you want
to retire and write
out a retirement plan.
Just saying you want
to be wealthy won’t
work. You need to come
up with a workable
plan and put it on
paper.
Having
a written plan forces
you to do something.
You should calculate
what you need to earn
and how to invest.
The written plan isn't
just the goal; it's
the whole thing: the
dream, the goals, the
options. The options
are scenario planning,
all the ways you can
accomplish that goal,
open a Roth IRA, contribute
to a 401(k), and buy
investment grade life
insurance.
3.
Find out everything
you can in regards
to your Social Security
benefits to see if
you qualify and what
the maximum is going
to be.
4.
Maximize your use of
tax-advantaged plans
such as employer retirement
plans, individual retirement
accounts; equity indexed
universal life insurance
and annuities.
5.
If your employer doesn’t
have a pension or retirement
plan, then you should
ask that they start
one. If they decline
to start one, take
matters into your own
hands by funding an
IRA, equity indexed
annuity and or equity
indexed universal life
insurance.
6.
NEVER touch your savings
if you can avoid it.
The end result of your
retirement or financial
plan should be systematic
investment. Start getting
into the habit of saving
money. Build an emergency
fund in a money market
account so you don't
have to raid the rest
of your savings and
investments when there's
an unexpected major
expense. You should
make it a point to
save at least one-half
of every pay raise.
If you haven’t any
funds to put away,
then perhaps you should
think about refinancing
to wealth builder mortgage
that would increase
your cash flow and
allow you to have financial
reserves. The real
definition of financial
security is having
liquid assets in a
safe environment.
7.
You should diversify
your assets. It's not
enough to stick your
money under your mattress.
You’ll have to invest,
but you have to do
it wisely. Few hit
it big in having a
stock. It's a discipline.
The message is one
of steady habits as
it relates to savings
and investing. Living
below your means is
a key point, whether
we're talking about
someone with $1.2 million
or $80,000.
Remember
this old adage: It
takes money to make
money. However, that
doesn't mean you need
a lot of money in order
to invest. Open an
account with a mutual
fund company that has
no-load funds and low
expense ratios. Build
a diverse portfolio
and you can reasonably
expect to earn 8 to
10 percent annually
on your investments
over the long haul.
The
best plan is to use
investment grade life
insurance where you
can get 8% or more
along with a triple
compound because it
is tax deferred. In
order to get this type
of gain under ordinary
circumstances requires
earning 10% or more
on your money.
8.
Always ask questions,
and seek the help and
assistance of a professional
advisor or a team of
advisors if you can
afford it.
9.
Start planning for
retirement now! Set
reasonable goals! Don't
be a walking billboard
for overpriced designer
clothes, shoes, sunglasses
and jewelry or auto
manufacturers. Don't
allow your house or
car payments to be
budget-busters by purchasing
anything bigger than
your income allows.
10.
Do a retirement plan
and monitor it regularly.
If
you would like more
information regarding
asset protection, trusts,
family limited partnerships
or the subject of this
article please call
or email our office.
