Retirement Money Lasting Forever
If you are like most investors, when you retire you want your money to last longer than you do. Accomplishing that is an extraordinary achievement and it will take more financial finesse than just picking the right investments. To reach retirement with more money than you need, your financial decisions and habits must be synchronized during your working years.
You need all the help you can get when it comes to retirement planning. Choosing the right investments in your retirement accounts only takes you part of the way to retirement. Your financial sensibility takes you the rest of the way.
Synchronized Financial Moves
#1 – Save Hard
The amount of money you save is just as important as investment growth. You cannot control market forces. Knowing when to buy and when to sell an investment is sometimes perplexing even for financial experts.
Give yourself a break by focusing on what you do have control over. You can control how much you save. By increasing your savings rate you help offset any market setback.
#2 – Develop Healthy Spending Habits
Stay out of debt by cutting back on your spending. The blueprint for finding extra investment money is your spending habits. Shrink your list of needs and you will spend less. The key to frugal living is to need less.
#3 – Properly Allocate
A proper stock and bond mix will help your investments rebound from market setbacks and let you sleep at night.
Young investors have years for their investments to rebound. They can allocate more of their money into more aggressive investments. The closer you get to retirement the more likely you are to invest in more conservative investments. These will generate a lower rate of return but your money will be safe.
#4 – Openness To Investment Alternatives
It takes a certain patience to use real estate as a retirement investment alternative; some investors avoid it due to the long down cycle real estate sometimes gets into.
Many investors use annuities because of the guaranteed stream of income and death benefit they provide in uncertain economic times.
#5 – Unopposed To Delayed Retirement
When you delay retirement you hold off collecting social security thereby increasing your benefit amount. In addition, you give your investments more time to grow; you get more time to invest and receive any matching that may be available.
#6 – Smart Investing
Maxing out your contributions to your employer’s retirement plan is one of the smartest financial moves you can make. You get a tax break for those contributions and you get the maximum employer match that may be available.
#7 – Relentless Investing
Markets go up and markets go down. Do not let these market gyrations spook you; invest regardless of market conditions. It’s hard to be a timely trader, leave that to the experts. Your job is to stay invested notwithstanding downward market cycles.
The Mystery Of Retirement Planning
Retirement planning should not be a mystery; you just need to make the right financial moves.