Tips on Financial Planning for Retirement

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Thursday, February 7th, 2008

Days fly and years roll by. Very soon you become old and retire from official duties. But what is the status of your financial planning for retirement? Commencing your financial planning for retirement at the right time and abiding by the plan is very important for your peaceful retired life.

If you had devised a clear sketch of financial planning for retirement before you retire, life after retirement is the best time for you to enjoy going walking everyday, keep playing golf day in and day out and relish the long vacation that you had been longing since years.

As a first step towards financial planning for retirement, read the steps below and plan accordingly to play and enjoy your life after retirement.

* You have to start financial planning for retirement as early as possible. As each day passes by, you are becoming old. When you are young, you are free of commitments and you can afford to save more. As you age commitments creep in and your savings would wean.
* Go through 401k basics by Motley publishing.401(k) is the best idea while you do financial planning for retirement.The 410(k) plan offers multiple benefits namely employee matching that doubles your principal and tax free investments. So make it a point to include this in your financial planning for retirement.
* Understand that there is no crooked way to mint money. Steady and regular savings is the key for financial planning for retirement. Start saving early in life. Plan well. Use the power of Internet to research and find the best tactics for financial planning for retirement.
* Use online retirement calculators to find the growth funds and income enhancing tools as you grow old.
* Don’t have trust in social security. With the existing rate of disbursement of the fund, the money is expected to get exhausted in 30 years. So your own unique financial planning for retirement is very much important.
* Use the rule of 72 to do your financial planning for retirement. For example, if you invest “x” amount and expect an annual return of 6%, divide 72 by 6 to know that it would take 12 years for your money to become 2x. This is a nice tactic that you can use in financial planning for retirement.
* Remember that your financial planning for retirement should include a combination of growth funds, monthly income generation schemes and wealth preservation avenues.