Retirement Planning Information
One thing you need to know is that in this area there is no cut and dried question and answer. There are not many simple yes and/or no answers involved. This means that there are many variables to take into consideration.
Ã?· One involves the vast array of professionals available to assist you. There are CFP’s (Certified Financial Planners) and/or financial planners, investment counselors, CPA’s (Certified Public Accountants) and/or accountants, bankers, etc.
�· Check into their background and then choose the one you are most comfortable with.
�· Being comfortable with your retirement planner is essential for your successful retirement planning.
The determination of the proper amount of nest egg depends on each individual and/or family. Here is some of the retirement planning information you need to think about:
�· One needs to ask themselves what their goals and accomplishments are upon reaching retirement,
�· What type of lifestyle do they desire?
�· What amount of traveling, if any, is desired?
�· What amount of expenses need to be met before enjoying other areas, etc.?
�· You need to know your personal preferences and goals for your retirement planning.
An important point to emphasize in determining the proper nest egg amount, according to the investment firm of Edward Jones, is
Ã?· “at a minimum, a retirement tool other than an employer-provided retirement plan is needed.”
Ã?· These tools include IRAs, dollar cost averaging (putting a fixed amount each month into stocks, bonds, mutual funds, etc.) and real estate – to name a few.
Another issue of concern during retirement planning involves healthcare.
�· One also needs to look at the possibility of long term health care expense. As one ages there may be some unexpected additional healthcare costs. With the population in general living longer than in previous generations, this coincides with an extension of Medicare benefits, Social Security, and the consequences of requiring investments extending over longer periods of time. This emphasizes the need to plan for the future.
�· Healthcare expense is an essential ingredient in having proper retirement planning information.
According to the investment firm of Dain Rauscher, it is “important that the client does not outlive their wealth.”
�· Proper retirement planning and investing takes into consideration what current holdings the client has and what level of comfort they want to live at upon reaching retirement. This is an important piece of retirement planning information you need to think about.
Ã?· Also of importance is having a variety of investment holdings – not putting all your funds into one area. This provides for additional safety.
�· Of course, the higher payout an investment pays, the higher the risk.
�· Determine what level of risk you are comfortable with to help your planning professional satisfy your needs better. Your risk level is an important piece of retirement planning information that you need to know.
A useful tool used in the retirement and financial planning fields consists of a software technology known as Custom Portfolio Planner (CPP) which is based on the modern portfolio theory. This theory, centered on asset allocation, was developed by Nobel Prize winners in 1990. Some firms utilizing this software charge separately for this service, while others include it in the cost of their services. Check around for the firm and style you are most comfortable with. As mentioned previously, your comfort level when dealing with your retirement planner is essential.
Finally, some individuals and/or families plan on a retirement centered around taking multiple trips abroad while others plan on going down to the community center and experiencing some camaraderie while playing bingo.
�· Goals and desires are individualistic.
�· However, you must know what your retirement goals and desires are so that the professionals can help you end up a with a beneficial retirement planning package. Your goals and desires are another important piece of retirement planning information you need give some thought to.
In conclusion, for successful retirement planning you must know yourself and your goals. You must also know your wants and means to arrive at satisfying results in the “nest egg” arena.
Study this retirement planning information and you will gain a greater insight into what you need and want. This will make it easier for you to talk with your financial retirement planner.
