How to Start Early Retirement Planning
According to Roy, a University of Toronto graduate, the key to attaining these attainable goals is to start young. Retirement planning requires that you start at age 35, but Roy says that if you start young you will make your retirement one of the most enjoyable times of your life. You will have the confidence that you have or are making progress toward, and are achieving a standard of living without financial worry and minimal stress. Starting early will also help you be more aggressive in your pre- retirement planning, and accomplish more of your objectives.
The first step to attaining a sound financial future starts with establishing a solid financial foundation that you can grow with. Having a rock solid future financial foundation is vital for long term retirement, and ensuring that your retirement is as stress free as possible and of course fun! With a sound financial foundation at the age of 20 you should be saving 15%-25% of your income, which will secure you financially. To start Roy says simply, "Put 10% of your income into a savings account or retirement fund. Save it and put it aside." Over time you will accumulate savings and once you have a reasonable nest egg of at least investment type, you can make informed investments and retirement decisions.
Another important aspect of building your financial foundation is learning basic investment principles such as the cycles, picking winner investments, and the psychology of creating your investment strategy and managing your fund/ Investments. All of these steps can be learned and implemented easily as a college degree or high schooler. After all, the next one to four years that you half way through You're life, you should be allotting at least 40% of your income to retirement planning now. Roy says, "Get a basic financial and investment education. Invest in the right stocks, mutual funds or real estate. Have basic tax and estate planning knowledge. Work towards the ultimate goal- which I call investing/wealth creation."
The first step however, is the most important. What I'm going to do is make financial decisions, minimizing my risk exposure and maximizing my return on investment. If you don't have enough money, don't panic. Roy says, "a good rule of thumb is to have enough for 18 months living expenses, but no more than 24 months. Make sure you have enough Living expenses saved to sustain the standard of living in retirement." To ensure that you don't spend all your money as soon as you have it, Roy suggests creating areported 10 percent daily700 NUMBER of dollars budget for all your needs, plus an additional 10 percent for holidays, gifts and personal expenditures. The golden rule is to use credit wisely from 10 percent up to your credit limit. For example, if you recently had a house purchase, you'd use about $12,000 to $14,000 annually. After you have a solid and sound financial foundation, add to it your investment group. Roy says, "invest your income hedge fund, group and personal assets and match their investment returns."
You should have enough money to live on during retirement and make sure your final expenses like taxes and repairs are taken care of and you have enough to give back to your community and charity. The extra income for retirement should come from investments or from your investments doubling their return. The first step is to start learning how to manage this. Sit down with your accounting professionals and start keeping books. Formulate a proper budget plan. Stick to this plan religiously. Be patient with the process and Increase you wealth by investing in your Trading Portfolio.
Before you invest your IRA (i.e. retirement account) or 401(k) money, make sure you have a budget. Your financial advisor will help you develop your own budget plan. First, make sure you have money to live on during retirement, and then invest all you can toward your goals, such as buying real estate, investing in other investments such as stocks/subprime, and using strategies like cash flow management from day to day to supplement retirement income.
Important Step #2 - Protect your family against ruin especially from disaster.
This defense is an age old thing and naive or wise folks can sometimes think it to be old fashioned, but it is just as important today as in years past. It varies state to state, but financial planners are trained to help families save enough money to protect against unexpected damages from disaster such as fire, storm, and other disasters. Insurance rates are expensive, and no family should live beyond their means during a disaster.
One of the first steps you can begin is by, making sure your family stays insured. Insurance policies can be purchased and paid for over time and by installment payments. Insurance inquires are very simple, especially because you are always assured an income each month should disaster strike. If your home is burned to the ground, your income will be replaced by payments.