Sit back and relax. Retirement is just around the corner, and you are all prepared to enjoy the good life with a steady and reasonable amount of income. Whether you are twenty-five or fifty-five, it is never too early or too late to start planning your retirement income. Obviously, if you start earlier, it will require less pain to achieve your retirement goals. Regardless of the amount of time left until you retire, you can take steps to know what your retirement will be like financially and make adjustments to create the retirement income plan that you need.
Know your personal retirement accounts that come from government and industry sources.
Social Security, company retirement plans, 401(k)’s, and IRA’s all need to be examined and evaluated. Search out any types of retirement accounts that you already have and some that you may want to add to the mix. Look at growth rates prior to retirement and payout rates and requirements at certain age points. For example, you can begin drawing down an IRA at 58 ½ years of age. You must begin taking distributions by age 70. Some annuities and other investment vehicles have similar types of rules to be followed. Use these points to start piecing together a picture of your retirement income as it escalates initially and possibly wanes later on.
Search out IRA’s, CD’s, and other savings possibilities that yield the highest interest rate.
Whether you are early in the retirement planning cycle or late, it is always possible to move money around to maximize your investment return. You may find it necessary to move your money to new banks. This can help you to earn a better intest rate or to find a more favorable investment environment.
Find a reputable investment broker to help you map the best way to diversify an income producing stock portfolio.
Various investment brokers employ different techniques to make their money. Some of these charge upfront fees while others choose to charge you to buy and to sell. Many charge some type of percentage of the total transaction, or they may use a flat fee system. You need to consider how you intend to invest and how much control you want in each transaction. Just because a broker is local or part of a big organization does not mean it is the right one for you. Shop around.
Decide if you will continue working after you retire from your primary career or job.
Many people choose to continue working beyond their age to draw Social Security or a company retirement benefit. Additional income at this point can mean much more fanancial freedom later if your health prospects are good. You can keep building your nest egg or let your monthly retirement benefit keep increasing until you choose to retire.
Work to develop other income streams that require little time investment to produce additional income.
Small amounts like $100 or $200 per month can make significant differences in your retirement lifestyle. It can mean the difference between affording a good supplemental insurance policy to Medicare or not. It can also be funds to fuel retirement travel or hobbies. Any type of permanent income stream that you can develop that will keep bringing in money is worth considering.
Decide on the lifestyle that you want during your retirement years.
If you plan to be a hermit, you probably do not need to worry too much about retirement. However, if you want to enjoy life and family without stressing over money, you need to work on your retirement income plan. In order to live large, you need large income or huge savings accounts. If you know how you want to live, it will guide your choices for building your retirement funds and income streams.