It's safe to say that retirement and what you will do once you leave the workforce is incredibly stressful. Retirement makes you think what you will be doing once your salary suddenly ends.
99% of the global population is concerned over their retirement. It raises a lot of questions about what retirement benefits you will have once you retire. Questions such as "Will the company be able to pay my pension? What will happen if the company goes bankrupt? Will the government be able to pay? Will I have enough money to live on after retirement?"
After these realities settle in, you have to consider additional expenses such as holidays, medical bills, mortgages, country clubs and college funds. To put this frankly, nobody wants to retire and count pennies during their golden years, you want to enjoy the time off after many years of working. So, the million dollar question to ask yourself should be: Are you being proactive when it comes to saving for your retirement? Do you have backup plans in case one (or some) of your plans fall through?
Three Effective Tools For Keeping Your Retirement Plans On The Right Track
Putting away some money here and there for retirement is a great start, but more planning is necessary when it comes to the money you'll be living off after you quit the workforce.
Number 1: Calculate Retirement Costs
For starters, you'll need to estimate the amount of money you'll need for retirement.
If you're 40 years old and you plan on retiring when you're 65, the annual income you are probably earning is $70,000 or more. Let's say that you happen to live until you're 92 years old. According to CNN Money Calculator, you would need around at least $750,000. This means that you would need to put away at least $1,500 a month, or 20% of your income, into your savings and retirement plan with a return average of 6% to have the money you need to last until you hit 92.
Number 2: Stick With Your Selected Savings Plans
No matter what you decide, it's important to stick with it. Many retirees regret taking money out of their pension plans.
If you plan to take money out of your retirement plan, it's important to make sure that you are doing it for the right reasons such as paying off your mortgage, medical bills, or other serious issues.
Do not use the money just to spend it on a holiday.
Number 3: Don't Panic
Regardless of how thick your skin may be, we always panic when we hear bad news about recessions and markets crashing.
However, it's important to understand that these reports are mostly fueled by the media to gain more viewership. In addition to this, market downturns are continuous cycles that no one can avoid. The most important thing you can do is choose a plan that offers your capital to not decrease in its value such as the S&P 500 Index Regular Contribution Plan. Knowing that your savings are protected from any sudden market changes - will help you sleep at night.
Once you've selected your plan, do not try to micromanage it. The portfolio could at some point run into negative territory and there isn't a whole lot you can do to avoid it.
To sum up, the most important things to consider for your retirement should be:
Contribute to your retirement as much as possible. Depending on the number of years you have remaining, the minimum target goal for your retirement should around $700,000 - $750,000.
Select secure funds and plans such as fixed income, bonds, plans that offer a guarantee, notes, treasuries, etc.
Diversify your portfolio as much as possible in the event you are managing it.
Don't touch your retirement nest egg. It is not meant to cover things you want, as it is meant for things you'll need.
Don't panic if the market goes down as this is only natural.
Retirement Planning Solutions
Amongst various solutions there are:
The 12-month Fixed Income Plan is provided by GG Capital one of the leading suppliers of firewood in Scandinavia with clients such as Shell, BYGMAXX and Co-op. They use the raised funds to increase their capacity to meet their clients demand. The plan pays 12% interest per year directly to your bank account every 3 months. At the end of 12 months you can redeem your capital or leave it in for another term. There are no charges or admin fees with this plan.
The S&P 500 Index Regular Contribution Plan allows you to decide the amount you want to contribute on an annual, semi-annual, quarterly or monthly basis. The plan allows you to invest directly into the S&P 500 Index, without having a substantial cash reserve at hand. The S&P 500 Index is the most diversified and safest investment and recommended by investors such as Warren Buffet. It provides a minimum total return of 40% at the end of the 15-year term or the S&P return, whichever is the greatest. Click here to read more about the S&P Index plan and other reasons as to why it is a fantastic investment for the average investor.