Planning for Your Retirement
Planning for your retirement is an important part of your overall financial plan. Americans are living longer and longer yet saving less and less every year for those retirement years. It’s hard to think about reaching retirement age when you still have a growing family that has growing needs and you are watching the costs of sending them to college going up and up with no end in sight but you must think and plan for those retirement years starting now.
First you must determine what your income needs will be once you retire and enter your “Golden Years”. Could it be 50% of what your income is now…or 75%? What expenses will continue and which ones will be reduced or eliminated entirely? Do you know?
It might seem ridiculous to go to a professional financial planner while you are still in your 30’s and it’s taking most of your income to just meet the monthly bills but you would be very wise to do that very thing. You need to make investments now to insure a secure financial future for you and your family. It isn’t too early; don’t let it become too late.
Your assets need to be diversified. Allocate your assets among cash reserves, bonds, annuities and stocks. Build a guaranteed income into your portfolio. Each person’s situation is different.
Protect your assets with insurance. You, of course, must have health insurance, life insurance and your home needs to be insured, too, but you might, also, consider long term medical care insurance. If you buy into a long term care insurance plan at an early age, your premiums will be very low and your coverage will protect your assets when or if the time comes you need it.
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