WeeklySA_AdminAre you about to retire? Many of us do not know that retirement planning is essential and should be part of financial planning that begins when you start working and accumulating assets. However, financial advisors believe that it is ideal that all your financial planning involves a qualified financial planner.
Factors to consider, before retirement planning, are:
• Having a retirement budget
You must know your current income and expenditure so that you know what you need for retirement and where costs can be cut before retirement.
• Identify your investment and saving strategy
Decide whether you are an aggressive or conservative investor and when to invest aggressively and move to a conservative approach when retirement approaches while investing within your limits.
• Plan for the years you have in hand before you reach retirement age
This planning will help define how much money you need to retire and help determine strategies for achieving investment growth.
• Income sources after retirement
For example, your pension and potential additional resources to cope with unexpected expenses Retirement life can bring in unforeseeable expenses in your life, and you need to make sure that you are prepared for it.
• Reducing debt
It is advisable to not have any pending loans or unpaid debts as you near retirement as the consequences of having to pay major debts on a reduced income could be catastrophic.
