RETIREMENT PLANNING: How To Protect Your Retirement From A Recession

Do you know how best to retire? What do you have to sponsor you when you’re weak and feeble? Why is retirement planning so important? How to avoid getting bored by planning for a long-term event? Read through to find the answers to the myriad of questions you must have bred in your mind.

Retirement planning refers to the financial strategies of saving, investing, and ultimately distributing money meant to sustain you after retirement. Some popular investment vehicles/ such as individual retirement accounts (IRAs) and 401(k)s, allow retirement savers to grow with their money with some certain tax advantages. Retirement planning should include determining time, horizons, expense, after-tax return calculations, assessing risk tolerance and determining what you want your retirement to look like (figure out how much you need to retire and prioritize your financial goals).

BENEFITS OF RETIREMENT PLANNING

ü Financial backup for emergencies.

ü Returns on investments.

ü Tax benefits.

ü Financial Independence & peace.

ü Secured income with volatility.

SOURCES OF RETIREMENT INCOME

ü Guaranteed income from social security annuities.

ü Pension Plans.

ü ESPPs or ESOPs

ü IRAs

ü Retirement savings (401(k), 403(b) and 457 plans

ü Other non-retirement savings like brokerage accounts, savings accounts and certificate of deposits (CDs)

Types Of Retirement Plans

ü Employer sponsored or profit sharing plan. (ESPP, RSU, ESOP etc)

ü Self Investment in the most anticipated future.

ü Government Sponsored retirement plan

ü Public provident fund

 How Best To Plan Your Retirement

ü Know your retirement needs.

ü Learn about your employer’s pension plans.

ü Consider basic investment principles.

ü Get your health insurance.

ü Don’t touch your retirement savings.

ü Be diversified and invest for growth.

ü Plan for inflation.

ü Cut or trim back your expenses.

ü Always be ready for early or unplanned retirements. The below are the types of unknown retirements to plan for:

1.     Disability

2.     Voluntary Retirement

3.     Deferred Retirement

4.     Prolonged ill-health.

Thanks for patiently reading to the end of this course. We hope after completing this course, you’d now be able to plan your retirement wisely. If you have any question or advice for us, mail it to wettmint@hotmail.com or mintgrows@gmail.com . We’d be very happy for your contributions.