Most people can expect more than 20 years of retirement nowadays. So how can you ensure that you’ll be able to make the most of this time, financially secure and able to enjoy life? What are the key things you should consider when planning your finances for retirement?
- Prepare to succeed.Write down how you are planning on investing for retirement. This helps focus your mind on what you’re aiming to achieve and provides a roadmap for action. It also gives you a yardstick that you can return to periodically, to gauge success and potentially formulate alternative strategies.
- Part of that plan should be an analysis of your income and all expenditure.Scrutinize everything. For example, are you still paying direct debits for products or services you no longer use?
- Get out of debt.Focus on clearing all your credit cards and other high interest debt before you start making retirement investments. Unless you are unusually successful, the positive returns from investments you make will never come anywhere close to exceeding the costs of servicing existing debts.
- Harness the power of compound interest by starting saving for your retirement while you’re young.A steady five per cent interest rate delivers more than 60% returns over ten years. The best retirement investments are made early – if you can start saving in your 20s, the returns over forty years will be over 600%!
- Take the long view when investing for retirement. Over a 15-year period, we identified a whopping 35% overall performance deficit in investor performance compared to benchmark indices that was due to attempts to ‘time’ the market and fund costs.What are you views on this? How far do you think above blog is meaningful to you.Do let us know in your comment, for more new blog you can visit to this link Click Here
Our independent financial advisers can help you plan for retirement and get the most out of your investments. Call us on 9811043144 for more information.