The best retirement year is different from one person to another due to various factors like age, type of occupation, what kind of retirement living you’re envisioning for yourself, and how much you’re earning, spending, saving, and investing.
You will have to think carefully about those factors in order to determine where you stand now and when you can expect to retire comfortably. If doing the computations is giving you a headache, meeting with a financial consultant can generally give you the figure you need.
Planning ahead is necessary, even if the process may be painful for many. According to the 2006 Retirement Confidence Survey, 31% of Americans would rather scrub a bathroom than plan for retirement. And if you only rely on your salary and savings, there’s a good chance that your golden years would be a bit tarnished because of persisting financial problems.
Of all the factors affecting when it’s the best year for you to retire, determining how to invest your money NOW is probably the most important of all. Look for options that will make your money automatically allocated in the appropriate investments for the appropriate amount at the expected year of retirement. Getting a good 401k plan from your employer is also another alternative.
If, however, you wish to personally manage your investments, make sure that your portfolio is diversified. Your money should be divided between investments and savings.
Lastly, do adopt a frugal – not cheap – attitude towards your money. Save now and spend later…when you’re retired.
And when that year finally arrives, here’s one last tip: fiscally speaking, it will be more advantageous for you to retire on July 1.
[image from Flick uploaded by sweetangel05]
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[…] is not planning in vain. People will add years into their lives until they have reached a moment when they want to retire. But with inflation, longer life expectancy and doubts on the Social Security’s future, how will […]
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