Thursday, June 9, 2011

Your Best Retirement Plan

Retirement Planning

I live in what I consider to be one of the Best Places in the World - Canada. A long time ago, I was just 23 at the time, I met a Vice President (VP) of Canada's largest bank.  I was working as a reporter at the time and had scheduled an interview with him. After the usual introductions and chit chat he asked how old I was and then he asked if I had Personal Retirement Plan. At the time I was a little confused. What on earth would a 23 year old be doing worrying or even thinking about retirement? But I remembered his question and after a some years it occurred to me how wise and important that question really was. In fact this wise banker was giving me both a very big hint and a very big gift. I was just too young and naive to get it at the time.

Your Investment Retirement Account

The key lesson here is you are never too young to start savings or to start investing. It may seem like a big word and a mature thing to do but saving, even if only a little at a time, is the best way to be certain  you will have enough to retire comfortably when you are ready. Investing just $10 a month can make a huge difference. After 20 years the magic of compounding interest will amaze you. This lesson is all about not worrying how much you have to invest. It doesn't have to be a big amount to get started.  the habit of setting aside money is obviously the first skill to acquire but making sure your money actually grows is quite another thing. Let's face it, ten dollars stuffed under your mattress every week for 20 years may amount to a pile of cash but what value will it really have if it hasn't grown? No your mattress is not one of the best places for your retirement savings.

A Personal Retirement Plan

When it comes to investing for your retirement one of the key features is making sure they are secure. Yes, its true secure investments don't necessarily earn you the highest return but they will grow consistently over time and you can sleep comfortably knowing you won't lose it all. Avoid dabbling in the stock market and other high risk investments. Remember this is your Personal Retirement Plan.  It's all about you! The goal of your plan is to make sure your post-retirement life is one with financial independence and a comfortable standard of living after you have stopped earning.

How to Invest for Retirement

Finding a good advisor who knows their way around the wild and wooly world of investing and retirement planning is always a good idea. Financial professional like investment advisers and financial planners have the knowledge and experience to assist you in making the correct choices for the best investments.

Other Retirement Investing

Although starting small by saving and investing even a small amount of money consistently works well over the long run you may want to consider a more aggressive approach when you have a little extra cash on hand. Some financial advisers say that its a good idea to use 60%  of your net income for your living expenses and then allocate the other 40% to savings and investments. As your income grows with age and work experience the 40% will grow too. But also your saving and retirement investment fund doesn't necessarily have to come from just your income. Money is money and it could be a bonus, a gift, an inheritance, maybe even a prize. Many people call that 'found money' and they like to go spend it on something luxurious - something they never would have bought otherwise. I consider that to be a waste. Sure, go buy yourself something nice but I encourage you to flip the ratio and invest the rest in a higher risk investment. So consider spending 60% of your 'found money' on the luxury of a higher risk investment.

In conclusion, for the best retirement investment results start saving and investing as early as possible. The more money you save and invest the more secure you are in living a comfortable life in the future. The best way to achieve your retirement goals - consult an investment adviser or financial planner who can help you make the right choices with your Personal Retirement Plan.

Editors Note: Be sure to check out this Special Report of 44 Things you Must Know before you Relocate, Retire or Invest Offshore -

44 Things You Must Know Before You Relocate, Retire, Or Invest Offshore


Sandra said...

Great post. You really need to plan out and determine best retirement plan is right for you.
Thanks for sharing.
retirement communities NY

Tutti said...
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