Most Australians spend their working lives thinking about retiring and having high hopes for comfortable and financially stable golden years. For this kind of retirement dream to come true, however, it takes a lot of extensive planning and preparing. The following tips will help you make the right retirement preparations at the right time to ensure that you have the best retirement possible:
1. Take Control of Your Finances Early
The earlier you start taking control of your finances, the better. While you may not be able to make a detailed retirement plan in your 20s, you can start saving the money that will give you more options later on. Have a look at your savings options, make a budget that includes savings, and begin slowly and wisely accumulating assets. Thanks to the magic of compound interest, you will have a lot more money to work with when your preparations get more detailed.
2. Know How to Invest and When
Once you have a bit of money to work with, start exploring your investment options. For instance, in your 20s, you?ll be concerned with investing in short-term and long-term savings and finding ways to supercharge your savings. Later, in your 30s, you may be ready to catch up on lost time by making a more aggressive investment plan, such as using geared share funds or by taking out a margin loan to finance a portfolio of direct share investments.
As you get closer to retirement, however, you?ll want to play it safe with your money, such as by diverting it into your superannuation. Basically, knowing howand whento invest your money is an essential part of preparing for retirement.
3. Make an Adjustable Long-Term Financial Plan
In your 20s, your savings might only be a little here and there as you take on various jobs and try to become more settled in life. It?s once you reach your 30s and are more settled that you can begin making a more detailed financial plan that will change depending on your needs over time. While this still isn?t the time to map out your retirement, you should be starting to acquire assets and gaining momentum with your financial security, while allowing for adjustments as your financial situation evolves.
4. Begin Your Retirement Plans
The real planning for retirement should start when you reach your mid-40s. At this stage, you should have a clear understanding of where you?re at financially and how realistic your goals are. You may want to start addressing questions regarding where you will live in retirement, whether or not you would like to travel, and how much you may need to maintain your lifestyle. At this stage, your preparations will be more about setting goals than making detailed retirement plans, but you?ll have a better idea of how much you might have to retire with.
5. Get Serious About Planning
It is when you?re into your 50s that you should start the serious retirement planning. You?ll start looking at your investments and consider moving them into more stable assets, and preserving capital will become more important than growth. You will also begin looking at what your retirement benefits are and when you?ll become eligible for them, as well asstart thinking about health care and what you?re retirement budget will look like.
If you own a business, your attention might shift from thinking about new online marketing strategies and plans for growth to how you can properly sell your business to get the best value from it.
Source: http://www.malkeenan.com/prepare-retirement/
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