If you’ve been responsibly saving for your retirement over the years, congratulations! However, while successfully building a nest egg is quite an accomplishment, remember that what you do after you retire can be just as crucial to your long-term financial health as what you did to prepare for your retirement. In other words, after you retire, you need to have a plan.
Determine your income needs and take stock. If you’re getting close to retirement, now is a good time to evaluate your situation and figure out how much income you may need after retirement. Check your accounts regularly, and see if you might need to boost your contributions in order to catch up.
In a financial context, refers to the allocation of savings or revenue for retirement. The goal of retirement planning is to achieve financial independence.
Retirement planning is the process of determining retirement income goals and the actions and decisions necessary to achieve those goals. Retirement planning includes identifying sources of income, estimating expenses, implementing a savings program, and managing assets and risk.Why Retirement Planning is Important
Retirement planning is important because it can help you avoid running out of money in retirement. Your plan can help you calculate the rate of return you need on your investments, how much risk you should take, and how much income you can safely withdraw from your portfolio.
These financial professionals help you set financial retirement goals and develop a plan to reach them. They can also help qualify, prioritize and quantify your retirement goals. Additionally, your advisor can act as a champion to keep you focused as you approach retirement age.
If you are looking to save for retirement, or are at retirement and need to live off of the income generated by your assets, you may need the help of a financial advisor. Not all financial advisors specialize in retirement planning, and so a qualified and knowledgeable retirement advisor should be sought out.
If you are still working, you may want to ask your employer if the have a A fiduciary advisor, which by definition, is an advisor who is paid a retainer by an employer to advise employees on their retirement plan investments, as well as to provide a complete range of other products and services.
Fiduciary Advisor vs. Financial Advisor
The biggest difference between fiduciary vs. financial advisor is the standard they’re held to when advising clients. Most financial advisors have to sell investments that are suitable for clients, but fiduciaries must act with a higher standard of care. <Continue Article>