Planning your own pension may be a challenging job indeed. Yet it’ll be worth the effort if you can meet your retirement goals at the end of the day. The five steps guide to the retirement planning process mentioned in the paragraph below which help to direct you towards your retirement goals. Do you want to learn more? Visit Hawley Advisors Retirement Planning.
- Next, determine at what age you would like to reach semi-retirement and then full-scale pension. Estimate the duration of your retirement period by calculating for your gender against the present average lifespan. This can be achieved by reviewing the mortality tables which most insurance companies have.
- The second step is to recognize your other financial needs for your children, such as tertiary education, dream home etc. It will help you determine the necessary financial quantity.
- Carry out a net worth analysis of the current assets and liabilities followed by an audit of the cash flow statements. If you are in an enviable role, you should proceed to the next step to start preparing your investment to meet your defined financial needs in phase 2. Otherwise, you’d need to draw up a debt reduction system to clear all unpaid debts and start investing until you’ve got a 6 to 9-month buffer for your regular expenses until you start preparing your investment.
- Phase 4 involves understanding the risk profile for the investors. This move also involves educating yourself on the numerous available investment options. You might then hire a financial advisor to build a long-term investment program for you. Understand that to ensure that the value of your hard-earned savings is not beaten down by inflation and to achieve your retirement goals, investment risks have to be taken to ensure a higher yield rate. This can be done by investing in investment funds such as a mutual fund.
- The fifth step includes carrying out an analysis of insurance requirements. You never know what’s going to happen tomorrow. Insurance is a perfect tool to use to control your investment costs before you meet your financial goals.
The five steps guide to the above-mentioned retirement planning process is the basic method you’ll need to follow. Certainly it will take some discipline and absolute dedication because, as the saying goes, some day everybody will have to retire whether they like it or not. Planning your retirement is therefore a must rather than an choice to ensure you have enough in your retirement nest to see you into your retirement years into old age and a comfortable lifestyle.