Old age Organizing with 10 Actions

Retirement Planning in 10 Easy Steps Title

There are just ten steps to retirement planning. When followed, you can have the peace of mind that you will not run out of money, that your principal will be secure, and that you are ready to live on a fixed income in style.

#1 - Selecting the right financial Advisor A good advisor is a partner – an advocate for your needs. Anyone trying to sell a proprietary product without considering your objectives should be avoided. They have their own agenda. Commissions should be secondary to your specific portfolio goals.

#2 - Avoiding too much risk /not protecting your principal With investments that guarantee principle such as indexed annuities, there is no reason to take risks with retirement funds. Good returns, consistent with safety, can be achieved. This is not the time to invest in speculative vehicles.

#3 - Formulate clear long-term objectives Without objectives, a good retirement plan cannot be constructed. Vehicles within a portfolio should be selected for their ability to meet goals within a given time frame. Considerable effort must be spent formulating and clarifying one’s needs during retirement such as amount of income, travel plans, inheritance, and care of loved ones.

#4 - Don’t Procrastinate and lose opportunities Failing to make decisions may lead to idle funds earning perhaps a lower return than possible such as in a bank account or money market fund. Inertia and inaction are the death of sound investing. Once an appropriate plan has been created, it should be implemented on a timely basis.

#5 - Focus on tax and estate issues Everyone facing retirement, or already in retirement, should evaluate ways to save taxes. They should consider naming the beneficiaries to their investments as part of estate planning. Both areas are vital aspects of the process of establishing goals and objectives.

#6 - Avoid high fees and commissions that eat away at profits Brokerage accounts and mutual funds have large fees and commissions that can reduce total returns. Many investments, however, avoid these fees and maximize the amount invested so you are already ahead of the game at the inception.

#7 - Appropriate expectations Unreasonable expectations, particularly of abnormally high returns in a given economic climate, can lead to high-risk investments and possible serious losses. Don’t gamble with retirement money. Prudence and safety are the watchwords of sound retirement planning.

#8 - Diversify Diversification has long been a cornerstone of financial planning. Over-diversification with too many stocks or mutual funds, for example, can lead to chaos. Investors often choose several of the same type of fund rather than selecting a different class altogether. You can also diversify within an investment.

#9 - Take care of income needs A great fear in retirement is running out of income for the duration of your lifetime. Careful planning will eliminate this risk and ensure there are adequate funds to maintain your lifestyle. Choosing investments that guarantee principal is the key to achieving this important goal.

#10 - Have a written plan for future evaluation Investing is the business of selecting and monitoring a portfolio such as a retirement plan. As such, a professional written document is required to establish the plan and provide a benchmark for future evaluation.

Presentation credit: Self Directed Retirement Plans LLC Self Directed Retirement Plans LLC 718 N 164th Drive, Goodyear Arizona 85338 Telephone: 866 639 0066 Fax: (866) 319-1113 Business Email : rick@sdretirementplans.com Site : www.sdretirementplans.com G+ : https://plus.google.com/111786870021715766483 Twitter : https://twitter.com/SDretirement YouTube: https://www.youtube.com/user/SDRetirementPlans Content Source : http://bit.ly/1AFEpfu

Old age Organizing with 10 Actions