5 things you must do to prepare a retirement plan
Nowadays you can expect to live in seclusion for twenty or thirty years – which is almost as long as we spend working. It is therefore logical to do something to prepare for this time of life. As Mark Twain said: “Plan for your future that is where you’ll spend the rest of your life.” Here are five things you should do to prepare a retirement plan.
- Determine the age you want to retire and the type of income you expect to live. Make an early start planning and think about your life after retirement, including how they want to live your life in which you want to live, how you want to spend your time and want to upgrade. In general most people live up to 75% of their income before retirement. The higher the income, the greater part of it must be replaced.
- Start investing. The youngest was better, but it is never too late! If you’re in your 20s or 30s is a good time to start. The power of compounding is incredible. The more time you let your money compound, the more it grows. The shortest time to invest more investments is needed. Start with your 401k or KiwiSaver.
- Review your insurance. Your insurance needs change with age and your financial priorities and changing responsibilities. Changing criteria to suit your lifestyle. This includes your life, health, homeowners and auto insurance. Life insurance may not even need a time, but health insurance is increasingly important that we become more susceptible to health problems. Even if you repaid the loan in time for retirement does not provide insurance for owners. Your home is usually your largest single investment, so its loss could affect the Security Council that you have worked.
- Make sure you have an emergency fund. You need to set aside sufficient funds to cover unexpected expenses. Having a buffer will be taken to avoid the use of savings set aside for income and growth. The general rule is to have about 3-6 months of expenses for the emergency fund, or if you work three or four months’ salary. Having your own emergency fund in place will be careful and give far less stressful to manage. Your emergency fund should be in an account of the application, so that funds are available when you need it.
- Review your will, trusts and powers of Attorney. Everyone should have a will, even if you think you have enough money to worry about. Make sure you and your beneficiaries are adequately protected. You must request the services of a professional to review the succession plan.