Retirement Income Plan

It’s only natural, after decades on the job, for you to feel a bit of trepidation as the day arises when your retirement income plan kicks in. For years, you have been able to count on a steady paycheck and the possibility of an incremental raise from time to time. Once you leave the workforce, you will be able to count on a monthly check from the Social Security Administration and payouts from the various accounts set up as part of your retirement planning – stocks and mutual funds that are subject to the whims of the market. If you’ve learned anything from the current state of the economy, it’s that your portfolio can take a hit one day and have you flying high the next. How do you create some stability when the financial sector is as volatile as a nitroglycerin plant during an earthquake?
Here are a few tips to keep you moving in the right direction, when the Dow Jones is a roller coaster:
Live Within Your Means
Making a budget is a basic practice for many households in all strata of society. Sticking to one, however, proves to be too challenging – they either expect to live like princes or attempt to be paupers and fall short either way. Sit down with your spouse and make a realistic target for your spending, leaving aside extra money for savings accounts and additional investments, as well as activities both of you can enjoy. Ideally, you will have begun this practice well before you retire – spending your last year at work spending as though you are already retired is a good idea – but even creating a plan in the first month or two after you leave the office behind is acceptable.
Diversify Your Portfolio
It’s likely you’ve heard this advice from your financial planner and investment magazines over and over, but it goes far beyond the types of stocks or mutual funds you own. Sure, you should have a variety of low- and high-risk accounts to provide a measure of security against a market in flux, but you might find other areas are being neglected. You probably have a home that acts as one of your major assets, but do you own other properties that can be rented or sold? Have you sought ways to solidify your percentage of precious metals in the overall picture? Take an honest look at your situation and see how things could be reshuffled to maximize your return.
Seek Out Earning Opportunities
Without a doubt, you have earned a break from the daily grind associated with a 9-to-5 job. Does that mean you ought to give up on employment altogether? Absolutely not – and that doesn’t mean you should be greeting customers at your local retail chain. Chances are good your experience can be put to good use in a variety of ways. If you were in advertising, for example, you could begin consulting with small businesses part-time to help them grow. This will allow you the fulfillment of continuing to contribute to society without having the pressure of someone breathing down your neck. Who knows? The freedom might unleash some creative talents you forgot you had!

Retirement Planning Guide

With proper retirement planning, you can add that charm and get rid of stress in the post retirement period. As most of the retirees have to live with a fixed source of funds, it is wise that you make proper planning for your retirement in advance. Here is a quick retirement planning guide to help you to take the right steps and secure your future:-

Wise savings

Perhaps the first step towards right retirement plan is to save wisely. Try to increase your savings as they may prove to be quite a handful after you retire. By planning your retirement properly, you can keep a track of your savings and the spending. If you see that the expenditure is increasing, it is better that you cut down on them and start saving for the future. The savings that you make can be very useful after you retire and come handy while emergencies.

Retirement plans

If you are looking for the right channel to save your funds, opt for some retirement accounts. There are many retirement plans through which you can save your hard earned money and keep funds for the future. You can opt for 401k accounts, Individual Retirement Accounts (IRAs), Roth IRA plan, 403(b) retirement plans, 457 plans and other retirement accounts. In order to choose your right retirement plan, you need to have an idea of the various retirement plans and their benefits and features. Most of these retirement plans provide good increase on your money and you can also enjoy tax exemptions and benefits from them.

While you are maintaining the retirement account, you also need to have some idea of the rate of withdrawing the money. In most cases, one is not allowed to withdraw money before the age of 59.5 years. If one withdraws money before the stipulated age, the tax rates are applicable and also he or she needs to pay a penalty of 10 percent of the amount withdrawn. After you attain the said age, you are free to withdraw the money. However, you should try to keep the initial withdrawal rate to around 5%.

Diversified portfolio

For bagging benefits out of your stock market, try to have a diversified portfolio. This prevents you from the whims of the stock market and also guide you to create a balance between the losses and the profits in the stock market. Usually, your portfolio should be a mixture of stocks, equities, debentures, bonds and other short term and long term invest channels.

Other factors

A proper retirement location adds to the charm of retirement. You need to search for the right retirement location to have a great post retirement period. You also need to maintain a good retirement lifestyle to be in the best of mind and body.A good retirement location will help live a lifestyle that you always dreamt of.

Thus following the tips in this retirement planning guide you can make your retirement life enjoyable.