I still remember the first bad financial decision I ever made. My seven-year-old buddy told me that if I lent him a few dollars, he would pay me back ten a few weeks later. Unfortunately, he forgot all about his debt, and I was left without my allowance. Although it might seem like a silly example, bad financial decisions like that one plague adults everyday. I have had my fair share, and so I decided to create a blog dedicated to helping you to invest your money properly. Before you take your hard-earned money and throw it at a cause, think about the advice on my website to make a great decision.
You don't want to leave your financial future to chance, so it's a good idea to begin planning your retirement early in life. The earlier you start, the easier it is to save since you can start small and your savings will grow over time. Plus, you can take bigger risks and you'll have time to recover from investment mistakes. It's difficult to make wise choices alone, so hiring a retirement adviser is a good idea. Here are some things your adviser can help you with when it comes to planning your retirement.
Paying Off Your House
Your home is a huge financial investment and the payments take a big bite out of your monthly budget. One of your financial goals as you approach retirement should be to have your home paid off. This significantly reduces your monthly expenses and it leaves you with equity you can use for emergency cash or to use for a reverse mortgage if necessary. Having your home paid off also adds more value to your estate if one of your goals is to leave something behind for your kids.
Deciding When To Retire
As you approach retirement age, you may struggle with when you're going to retire. You may want to retire early so you can travel and do active things while you're still young and in good health. However, if you also want to supplement your Social Security income with a job, then you'll need help figuring out how much money you can make. If you make too much money before you reach full retirement age, you may lose part of your Social Security income. Unless you can retire and live off Social Security and your investments, you'll need to pick your retirement age carefully and take into consideration how working will affect your benefits.
Adjusting Your Investments
You'll want a retirement planner to track your investments and savings throughout your working life. As you get older, you'll want to move your money away from risky investments into more stable ones so you don't lose money you have earned or saved. You'll also want help in determining a realistic savings goal. It won't be much fun in your retirement years if all your money is eaten up in living expenses and food. You'll want to travel, go to movies, buy new things for your grandkids and enjoy life. This is very difficult when you are on a fixed income unless you have a sizable savings account you can draw from. A retirement planner takes your expected expenses and activities you enjoy into account to give you a goal number to strive for. The number will probably increase over the years as the cost of living continues to go up, so you may need to review your savings goals and your progress on a regular basis.
In addition, your retirement planner can help you choose a good retirement fund that you keep separate from savings for college and other big expenses. Your retirement savings should continue to grow slowly over the years so it is ready to fund a long and happy retirement.
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