Are you ready for retirement? The majority of people out there are not prepared for retirement, In fact most people do not know how to invest so they put off retirement planning which puts them at a significant disadvantage. What we are going to do is provide you with some information on the things you have to address before you can retire so without delay it is time to begin the review process.
Establishing Goals Is Key For Success
Do you know how much money you are going to need for retirement? If you do not know the number then you will not be able to properly plan for it, the reality is there is no “one size fits all” approach so what would you like to do during your retirement years? If you like to travel abroad then you will need to make sure you have sufficient funds available to sustain that lifestyle. Another important consideration is how long you plan on retiring, while no one knows how long they will live you will loo at the average person who lives between 65-72 years old and in some cases longer.
Where will you live? Most seniors end up downgrading once they reach retirement age since they are not able to keep their home clean or navigate the stairs. If you will be downsizing then the profits you generate from selling your current home could help finance your retirement. Since real estate values fluctuate you should carefully do your planning.
Protect Yourself From Taxes Legally
In order to reach your retirement savings goal you have to invest in a tax sheltered account that will grow freely. These accounts will protect you from taxes until you start taking the funds out, usually by that time you are in a lower tax bracket so you should end up paying less. The technical term for these accounts is a “self managed superannuation fund” or SMSF which lets you invest for retirement without taxation. You should consider speaking with a trained expert who has experience in retirement planning, the advice you get from these experts can really help you make one of the most important decisions of your entire lifetime so this is something you really need to take seriously. Make sure the person you do go to for retirement advice is licensed and has a great reputation, this is not a decision you can leave to a novice.