Retirement Planning
Retirement planning is the process of determining retirement income goals and the actions and decisions necessary to achieve those goals. Retirement planning includes identifying sources of income, estimating expenses, implementing a savings program, and managing assets and risk. Future cash flows are estimated to determine if the retirement income goal will be achieved. Some retirement plans change depending on whether you’re in, say, the United States, or Canada.
Retirement planning is ideally a life-long process. You can start at any time, but it works best if you factor it into your financial planning from the beginning. That’s the best way to ensure a safe, secure—and fun—retirement. The fun part is why it makes sense to pay attention to the serious and perhaps boring part: planning how you’ll get there.
KEY TAKEAWAYS
- Retirement planning refers to financial strategies of saving, investment, and ultimately distribution of money meant to sustain one’s self during retirement.
- Many popular investment vehicles such as IRAs and 401(k)s allow retirement savers to grow their money with certain tax advantages.
- Retirement planning takes into account not only assets and income but also future expenses, liabilities, and life expectancy.
- It is never too early—or too late (although earlier is better!)—to start retirement planning.
Retirement Plans come in many forms and each have their pros and cons. The Best Retirement Plans for 2022 are provide here for you to review.
See Guideway Financials Blogs for comments about the financial planning and more.
