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Want A Great Retirement? You Need To Do These 3 Things

It might seem like a million miles away, but as you get older you start realizing how quickly time is flying. Your twenties quickly turn into your thirties, your thirties turn into your forties and before you know it you are a couple of years away from retirement. So how do you go about making sure you have a great retirement? There are only 3 things you need to know in order to retire successfully. Nothing more, nothing less.
  • Start Your Planning As Early As Possible
Too many of us put our retirement planning off for far too long. The trick is to start early. The sooner you can start saving and working towards your goal, the better. The last thing you want is to wake up with 5 years to go, until your retirement “D Day”, in a panic, knowing you just don’t have enough time to stash sufficient cash for a financially stress free retirement. Define when you want to stop working, calculate how much money you are going to need to achieve your goal and work the plan every month like you do your gym routine.
  • Start Killing Your Debt & Don’t Go Into Retirement Owing A Thing
Besides not having enough money to retire on, having significant amounts of debt, going into retirement, is going to derail your plan really quickly. When you finally retire it’s all about taking the money you have managed to save and turning that into a long term income stream. The more money you have accumulated, the bigger the income stream you can pull from your investments. If 50% of the income you are drawing down is going to service debt, you are effectively eroding your retirement nest egg. You want to go into your retirement not owing a cent to anyone. Your house should be paid off; you should owe nothing on your cars and certainly have no personal loan debt or store card credit in place.

The goal is simple. Accumulate as much as possible, owe as little as possible.
  • Diversify Your Investments
You don’t want to have all your eggs in one basket when you retire. You want to make sure your monies are invested in a balanced portfolio. Too often retirees play it too safe and only invest in interest bearing assets, just to find that inflation is eating away at their cash. Or on the flip side, get invested 100% in high risk assets like equities, just to see the market fall by 30% overnight and, because they are drawing down the maximum in terms of income, they can never make up that loss. The best advice is to seek professional advice and get a proper investment plan drawn up, which is reviewed at least on a quarterly basis.

A successful retirement is as simple as
  • Having enough money saved
  • Not owing any money
  • Being invested in a balanced portfolio
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