The New Age of Retirement Planning
What a rollercoaster ride the current stock market has been in 2020. If I never have to go on this ride again, I would be okay with that. I am sure the words “risk tolerance” are taking on a whole new meaning in retirement planning.
ONE OF THE BIGGEST QUESTIONS IN RETIREMENT PLANNING – WILL I HAVE ENOUGH?
Will you have enough to live a retirement lifestyle in which you feel comfortable? Less than half of working Americans have even begun to save for their retirement and most believe they will live 18 years after they retire. Retirement is not hard, retirement saving is hard.
The earlier you begin to plan for your retirement, the more choices you have and the greater your chances for a successful retirement. Retirement planning is much like planning a vacation. Any trip begins with determining your destination, or goal, and a timetable for taking each step towards that goal.
Retirement is one of the most significant life events that many of us will experience. From both a personal and financial perspective, realizing a comfortable retirement is an incredibly far-reaching process that takes wise planning and continued determination. Even when goals are reached, managing your retirement is an ongoing process that must not be neglected.
In the world we live in today, I would think that the number one key to a successful retirement plan is diversification. Even if you don’t have a lot of money, there are options available other than the stock market. Self-directed accounts allow investors to choose from a plethora of options.
MY STRATEGY – TED IS MY FRIEND FOR RETIREMENT PLANNING
T – TAX EFFICIENT STRATEGIES
As a saver, it is important to understand that while returns are important, what you earn after taxes is what counts. Be sure you have developed a strategy for your money that maximizes returns in your taxable and tax-free accounts.
E – EDUCATE
The single most important thing you should do is to educate yourself. I’m not just talking about investment terminology, but also in terms of getting an idea of where you are and where you need to be. Without a destination in mind, you will never meet your savings goals. To be able to retire on your schedule, you’ll need a plan. It’s that simple.
D – DON’T LOSE MONEY
This is the cornerstone of Warren Buffet’s investment strategy. The hardest part of investing is to recover from a loss. The money is made on the purchase. Go back to “E”— educate.
If you have any questions about this article and would like more information, please feel free to contact Midland at 239-333-1032 or visit www.midlandtrust.com.