Why Retirement Planning Is Crucial
Entering retirement without planning may be a waste of your time. You need money to retire. If you do not have enough money to stay retired you will be forced back to work; and who wants that. Your retirement is designed to be your second chance to do all of the things you missed doing during your working years. If you enter retirement without any retirement planning, lack of money may just limit the your second chance.
When we hit that magical retirement age we think everything will just fall into place, think again. You need enough money to afford the retirement lifestyle. The best time “before” your target retirement date. Saving money is important but there is also another important retirement planning task that you to know about.
The Retirement Planning Concept Missed By All
Protect Your Money From Retirement Risk
Not only do you need enough money to retire, you also need to protect your money. As odd as that may sound, it is the one retirement planning concept most often overlooked. Retirement money is attacked by risks before, during and after you retire. The only way to guard against the risk is to choose the proper investments during your retirement planning. You will also need continually monitor those investments.
While you are saving for retirement your money faces the risk of market loss and inflation. Those are risks faced by all investors and cannot be avoided only minimized. When you retire you face those same two risks but possibly a few more. In retirement you face the risks of outliving your retirement money, not providing enough income for a surviving spouse and the cost of your health care which may or may not have been paid for by your employer. Good retirement planning should help you avoid all three of those additional retirement risks.
In Retirement Your Work Is Never Done
The best way to maintain the perfect retirement lifestyle you always envisioned is to never stop retirement planning even after retirement. The market conditions will not stop once you retire and retirement risks will always be present. It will be your job to protect the money you worked so hard to save. Are you up to the task?