Ten things to do now to ensure you will have a golden retirement
Know that you are going to retire someday. It is important that you prepare yourself for that event mentally as well as financially. Many people start suffering from different ailments as soon as they retire. That is because all of a sudden they find that they have nothing to do. They start doubting their own worth. As a result, they start suffering from bouts of depression and consequently from different physical ailments. The pay packet they used to bring home every month has vanished too and this too adds to their woe. That is why preparing oneself mentally as well as financially is equally important.
As long as you are physically capable, you must find avenues to keep yourself engaged during the retirement years. It can be anything â socializing, hobbies, voluntary work or even part time salaried work. Do not keep yourself secluded; interact with fellow being. If nothing else, such interaction will keep your faculties sharp and your physic fit. However, unless you mentally prepare yourself from now, you may not be able to do anything at the time you retire.
Money is important and so is financial preparation. It is true that one generally gets a tidy sum as retirement benefit at the time of retirement. However, that is not generally sufficient, especially if you want to have, what you call, a âgolden retirementâ. You must make other arrangements too and contributing towards a reliable retirement plan is just one of tem. You can also have a look at the IRA and 401(K) plans to ensure a golden retirement.
A retirement plan is usually tax exempt. It can be set up either by an employer or by insurance company. To make it feasible pool is created out of the money deposited, which is then invested on the behalf of the employees for their retirement benefit. You can choose from defined-benefit fund and defined-contribution fund. While the former offers a stipulated benefit irrespective of the performance of the fund, in case of the later, the benefit depends on how it functions.
The IRA is also a form of retirement plan. It is an investment tool used by individual to earn and earmark funds for retirement savings. The best advantage of such a plan is that it offers tax advantages. The 401(K) is also a qualified fund set up by the employer to which qualified employee make salary deferral. In other words, money is automatically deducted from his salary to be deposited in such funds. The employer too makes matching contribution to the fund. The earnings accrue on a tax-deferred basis.
You must also look for other saving avenues. You can buy shares of good companies so that they can give you good returns over a period. If you do not like that, you can invest in mutual funds, which generally have qualified fund managers to see that the fund performs well and offers good return. On the other hand, security is important to. Therefore, you must keep some money in bank fixed deposits or buy government bonds. They will give you a fixed return irrespective of the economic environment. You can invest on a second home too. It can generate revenues in the form of house rent when you are leading a retired life.
That was all about financial planning; let us talk a little about other aspects too. Start your life early so that by the time you retire, all your liabilities are over and you are now a free person ready to enjoy life as it comes. Do not forget to get the right kind of insurance coverage.Â Health insurance is essential; otherwise, one ailment can wipe away your entire investment.Â In short, you must have a look at every aspect of your life, if you want to have a golden retirement.
Therefore, if you want to know about ten things to do now to ensure you will have a golden retirement, they are as follows:
1.Â Â Â Prepare yourself for your retirement years mentally as well as financially
2.Â Â Â Contribute towards a pension/retirement plan from the beginning of career.
3.Â Â Â Open IRA or Individual Retirement Account/Arrangement.
4.Â Â Â Participate in your employers 401(K).
5.Â Â Â Find other suitable saving avenues.
6.Â Â Â Be careful were you are investing your money; Pay equal attention to the security of the fund as well as to its growth.
7.Â Â Â Start your life early so that all your children become self sufficient by the time you retire.
8.Â Â Â Buy your home early in life so that the mortgage is cleared in time.
9.Â Â Â If you take any other loan, make sure you will be able to clear it away before you retire.
10.Â Â Â Get your health and home insured