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Financial Planning for Retirement

shubhodeep prasanta das

It’s a question on the minds of everyone, but not everyone can answer it. Many people don’t know how to plan for retirement, and as result, they’re left with no income when they stop working. Even worse, because many people are facing economic uncertainty in their future, it is harder than ever to generate enough money for your retirement. Here are some basic tips to help you start.

Start saving now

The only way to start your retirement planning early is to start saving and shubhodeep prasanta das investing now. The earlier you start, the more time your investment will have to grow. Many experts agree that you need approximately 25 times more money than you make each year in order to retire comfortably. However, it is never too late to start saving and investing. Start with a small amount each month, and try adding a bit more as your financial situation permits.

Earn the most you can

Earn as much as you can while working. Earn more if you can, because there is no shame in earning more. Your earnings can earn you a higher return, and then some. You should also invest what you can, and invest as much as you can afford.

Invest your earned income

Your current salary should go into your retirement account first, followed by any other income that you receive. However, don’t overdo it on the spending. Keep your discretionary spending as low as you possibly can.

Remember that there are different types of income

There are three basic types of income in retirement planning: guaranteed, variable, and passive. Guaranteed includes Social Security benefits, pensions, and annuities. Variable includes investments, such as stocks and bonds. Passive includes things like CDs and savings accounts. The more guarantees you have in your plan, the safer it is from losses due to stock market fluctuations. However, if you have plenty of time to grow your money, a more variable portfolio can provide you with a higher return on investment.

Do not forget about expenses

When planning for your retirement, keep in mind that you will have expenses once you leave the workforce. Many people do not realize that they will need money for things like health care and transportation. In order to account for these costs, review any benefit options that are available to you at work, and also plan for possible medical expenses in retirement

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