Retirement sneaks up on people when they are not really thinking about it. They get comfortable cruising along in their jobs and, before they know it, it is time to leave the job and enjoy what many call their golden years. Hopefully, they have enough saved and invested so retirement is not stressful and they do not have to re-enter the workforce. Experts agree with the old adage that those who fail to plan, plan to fail. In that spirit, here are some helpful tips on retirement financial planning in Houston.
• Most financial advisers say the average person should have a nest egg that can annually provide somewhere between 70 percent to 90 percent of their pre-tax pre-retirement income. Talk to the financial adviser about what percentage of income should be saved to achieve this goal.
• If the person holds a high amount of credit card debt, this should be eliminated as quickly as possible. There is another old saying stating you have to spend money to make money. It is this mindset that must be applied to vigorously eliminating this debt and removing all but perhaps one credit card from your life. It is much better for the retiree to keep their money rather than continuing to accrue credit card debt.
• Take advantage of any retirement plans offered at work. Many employers will match IRA contributions up to a certain percentage or amount, so it is well-advised to exploit this match for all it is worth. If this is not done, the employee is, quite literally, throwing away free money. Experts in retirement financial planning in Houston agree this is a great way to save for the future without any real suffering in the present.
• All investments should be as diversified as possible so that all of the cash is not wrapped up in one single type of account. Mutual funds, bonds, and treasury bills are all solid ways to save for a solid retirement.
Click here to discuss other investment options that may be available. By saving smartly for retirement, life after work can be something to be looked forward to rather than something to be feared.
