Make right moves to secure a prosperous retired life

Profile Picture
By: skyden.dredge
on 5th Aug,2011

When you are young, you have the time to tweak your portfolio to raise your wealth and save for the future.
Make right moves to secure a prosperous retired life

When you are young, you have the time to tweak your portfolio to raise your wealth and save for the future. But if your retirement is near the corner, you need to rethink your strategies. Here we discuss few tips so that you can avoid running out of money in retirement.
Put a plan in place

It is very important to plan your retirement. To develop a proper retirement plan you need to consult various websites related to retirement planning, visit libraries and of course to consult a professionally qualified financial planner.  With retirement plan in place, you will be able to know where you actually stand in terms of finances, and where you will actually go. This is the step to set up a smooth retirement.

Do not withdraw money in large quantities

Many of you, the retired persons, invite troubles by withdrawing too much money from the investments that you have made earlier. However, this is not the right approach. Rather, you should take a slow and gradual approach in withdrawing money. It is also important to show more restraints when the markets are down. When the markets are on a free fall, it is better to wait till the market recovers. If you withdraw money when the market is plummeting, you are actually in the losing side.

Take adequate guard to arrest inflation

Inflation is like a silent killer. It can evaporate all the gains that you have made through investing. This is particularly true with the individuals with fixed income. Inflation is refereed to as the continuous rise in the price levels. Your retirement planning should be such that your retirement income grows with rising price levels. Otherwise, you will find it difficult to maintain the same standard of living with a fixed income.

Do not retire

The legal age of retirement is 65. This is the retirement age of the employees in most of the organizations in the country. But if you feel that if you are mentally and physically fit, you can continue with work. There are many organizations in the country who absorb the retired persons to full time jobs. The huge experience of the retired persons comes indeed handy to these organizations. Otherwise, you can also look for some part time jobs to earn some additional; money. Or else you can start some business so as to augment your income.

Ensure some guaranteed income

Ensure some guaranteed income post retirement. If you enjoy company pension, that is fine. Otherwise, you should arrange for some other social security safety net. You can think of purchasing an annuity programs or a retirement policy from a recognized insurer. This will provide you the much needed social security after your retirement.

Opt for reverse mortgage

You can also opt for reverse mortgage plan to bolster your finances. It will arrange a lump sum amount of money for you or a stream of income, given the condition that you own a house.

It is wise to take appropriate steps early in your life so as to secure better future years.

No votes yet

Page loaded in 0.831 seconds.