Achieving financial security is less about how much you earn and more about how much you keep.
The truth is that most people do not have a retirement savings plan in place and the tendency is to spend what they earn.
In order to have a retirement with a good lifestyle you need to carefully plan and then follow through on your retirement plan.
Here are a few recommended tips that if followed will help you to achieve at least a comfortable retirement.
Start as Soon as You Can
The message here is – sooner is better than later, but it is never too late to start.
Budget – have one!
Without a budget money tends to disappear and often gaps in our expenses appear that require the use of credit cards or loans to fill. The interest on these then reduces how much you can put into savings.
The smart way to ensure that your retirement savings continue to grow is to count them as an ‘expense’ in your budget – and a budget is the best way to ensure that you have control over your expenditure so that you don’t reduce the value of these savings by using credit or loans to cover your living expenses.
Treat Your Savings as an Expense
When you are setting up your budget you should treat your savings as an expense item and regularly commit to ‘paying’ it just like any other regular bill like rent or your mortgage, phone or electricity.
Work with an Experienced Financial Planner
The world of investment, insurance and financial planning are increasingly complex and challenging to deal with. That is why you need to engage with an ethical professional financial planner like Partners in Wealth. Not only are they abreast of current trends and legislation but they use a research based approach – not just a ‘flavour of the month’ one.
The smart way to make your financial future secure is to work with an expert.
Don’t keep all your eggs in one basket – Diversify Your Portfolio
Having all of your savings in the one type of investment increases your risk and your chances of incurring losses. No-one can predict the vagaries of the market but an experienced financial planner will mitigate your risk by ensuring that you have your money in a spread of investments that matches your personal risk profile.
In this way your assets are better protected.
Think ahead about Retirement Expenses
Working with your Partners in Wealth planner means that future potential costs will be taken into account when developing your financial plan.
Your expenses, especially medical ones are likely to be higher the older you get so it is prudent to plan for them now to ensure that your retirement plan is aimed at covering all of your needs.
Regularly Review and Reassess Your Circumstances, your Financial Plan and your Asset Portfolio
Regular reviews of your assets should be an important part of your retirement strategy. Your circumstances may change, the market may shift or your goals may alter. With regular reviews you and your Partners in Wealth planner can ensure that your assets are being utilised to their best effect.
The Bottom Line
These are just a few of the things that you should consider doing in order to improve your retirement lifestyle.
Your Partners in Wealth financial planner will help you to identify these and any other factors that you should take into consideration.