Retirement may appear as though it is some abstract thing in the very distant future. However, if you do not start preparing for it now, you may not have the type of retirement you hoped for if you are able to retire at all. You have to stop and ask yourself: “Will I have enough money to retire?“.
The Time To Prepare Is Now
There is no special age at which one ought to begin to prepare for retirement. The time to get working on it as soon as possible. Younger people are at an advantage because they have more time to allow their investments and money to grow. However, those who are nearer to retirement can still do something about their circumstances.
To begin, one must take stock of where they are financially and what kind of plan they can lay out to get into better shape. This means breaking out either a piece of budget planning software or maybe just the standard pencil and paper. Take a look at bank statements from the last six months or so and see where you are really spending your money. Start from there and craft a budget around new spending habits that are better under control.
The Investment Part Of The Equation
Basically no one makes it to a comfortable retirement without investing. Unless you happen to inherit a fortune or hit the jackpot on the lottery, you will need your money to work for you to grow into larger sums and thus a more comfortable retirement. Even if you are among the fortunate few, you can still gain something by investing.
Investing works because it is the way by which one can gain a return on your money that beats the rate of inflation. The stock market averages somewhere around 10% return per year over a long period of time. At the same time, inflation averages about 3% per year. This means that one has to do something like this in order to just stay ahead of inflation.
Different Types Of Investments For Different Types Of People
There are all types of different investments worth considering. While most of us think of stocks and bonds, there are other types of investments that belong in most retirement portfolios as well. Consider for example the role of precious metals in investments. Rothira.com makes a point of explaining this role,
Gold and silver can be your best investment friend during times of crisis.Precious metals seem to thrive on crisis and instability. This makes a strong case for keeping at least some metals in your retirement portfolio at all times. And more during periods of crisis.
As those nearing retirement are likely more to want to avoid taking on excessive risk, precious metals could work for them. As with any other type of investment, it is best to know something about precious metals before putting too much money into them. Also keep in mind that they make up just a small portion of most successful retirement portfolios.
Speaking With An Adviser And Mapping Your Retirement
Financial advisers can provide a lot of answers when it comes to figuring out how to get to the type of retirement that you want. You and the adviser can work out what kind of spending you want to do in retirement, how much money you have now, and how much you will need to save to reach your goals.
Everyone has different goals and objectives when it comes to retirement, but everyone needs to get started now.
Contact us for more information regarding retirement and how you can reach the one you want to get to.