If you are planning for retirement within the next ten years, there are a few things to consider to make your retirement life more enjoyable and engaging. All these needs a steady fund-flow even when you are not working, which needs proper planning and saving of money now when you are working. After many years of working and saving money, you will see retirement on the horizon at one point. You need to plan it now to ensure that you have a comfortable retirement life. You may examine your income sources in advance and target your retirement age to make necessary adjustments in your savings.
For retirement, you may start by envisioning the kind of retirement you would like to experience. Some may plan to work part-time, some may want to travel, some want to do social volunteering, etc. For anything you envision, it may need perfect planning and enough supportive resources, which you can start thinking of now. Further in this article, we will discuss some expert tips on proper retirement financial planning.
Scott Tominaga retirement planning tips
Scott Tominaga isa leading investment consultant and fund manager with many years of industry experience in the financial advisory field. Let us further explore some pro tips from this investment guru about planning for an impending retirement.
- Make sure you have diversified investments
It may be so tempting to shy away when it comes to stocks with high risks, but the growth stocks may offer important at this point in your life for some great returns. You may consider a balanced mix of bonds, stocks, and mutual funds with high to minimal risk by seeing your retirement and liquidity needs in mind. You need to examine all income sources in advance during retirement to readjust and diversify your investment plans accordingly.
- Utilize the retirement accounts with catch-up contributions
Try to build your retirement account whenever possible. You may try to maintain the maximum allowed in the 401(k) or IRAs and other similar retirement plans. You may aim to contribute enough to the 401(k) and try to match up with the contributions that employers also offer. If you are in the 50s or even older during the given calendar year, then the rules for catching up contributions may let you set aside a lot more than usual contributions.
- Downsize the debts
You may also consider accelerating your mortgage payments if any, so all loans can be paid off while you are working itself. It may be a burden if you carry forward your mortgage to retirement life. You may also focus on limiting any new debt along with getting off the existing debts. If you tend to pay off your credit with 15% interest charges, buying with cash overtime may be like saving 15% for a risk-free investment.
By carefully planning your retirement portfolio, you can calculate your predictable savings and monthly income during retirement and then slowly try to build it up over time. There are many articles by Scott Tominaga in this financial advice series about retirement investment plans, which will give you further insights into proper retirement fund management.