The concept of saving for retirement is often confusing. My first recommendation to you is to call a financial representative from the company that holds your accounts. They often have loads of free advice to give. It can also be worth your time to pay a separate financial planner or advisor, particularly if your assets are huge or your situation is complicated.
To help you in these discussions, it is good to understand a few basics when it comes to your retirement arrangements. The following facts should give you a starting place.
• Determine your target retirement goals based on how many years you are from retirement. This is in reverse the common perception of your age. When you actually want or can retire will depend on many factors that go way beyond your current age. Some careers demand an earlier retirement than others, while your health, the age of your kids, spouse’s plans, etc, can all factor into your unique equation.
• This calculated years to retirement will help you determine a best mix of assets for your portfolios. For example, if you have 30 or more years until retirement you should have at least 90% of your assets in stocks. In turn, if you are only 5 years away, that mix should be more like 50% stocks and 50% bonds/fixed assets.
• Another critical factor is determining how long you will need to support yourself after retirement. Do you plan to work part-time for a few years? Do you have current health problems? Many people these days can plan live 30 years or more after the retirement age of 65. It is important to ensure you have enough to support you that entire time.
Although the idea often seems foreign and complicated, staying on top of your retirement plans is key to a successful old age. We all are going to get old; it is inevitable. Make sure that you are the most comfortable you can be by proper planning now.
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