With the right knowledge of savings and investments you can spend a worriless, blissful after-retirement life.
1. Talk to financial advisor
No one can guide better than a financial advisor when it comes to investment, in spite of directly investing into the mutual funds or life insurance take advice from the financial advisor who work for the means of the clients. Smart investing needs thought, time and patience. Schedule appointment with your financial advisor once in a year to talk about your changing aims and needs and this can help you to refine the portfolio and fulfill your desired retirement plan.
2. Pay off your debts
Try to clear all of your debts prior your retirement in order to live peaceful after-retirement life. Try to clear them as early as possible for you then you can start saving and investing. Choose it live a life with financial freedom rather than be trapped into debts, avoid the practice of taking loan in order to enhance your living standard.
3. Start early
Experts advice to start of you retirement planning from early 40s, the earlier you will start the merrier you will be. Remember that time is the most significant factor in accumulating wealth.
4. Save liquid cash in the bank
According to the experts, you must save liquid and safe cash in your bank that can help you in emergency, they advise to keep aside 3-6 months income in the bank account for utilizing in emergency need. There is no specific answer for how much you should save, the more you can save the more assured you can be in those troublesome days.
5. Buy bonds
If you buy bonds in return you will regularly receive interest, bonds that are issued by government agencies and renowned corporations can be considered as safest. When accumulated into correctly diversified portfolio, bonds can be the significant source of trustworthy and steady retirement income.
6. Dividend-disbursing stocks
Some companies pay dividends to the stock owners, but this practice must be limited in certain extent as certain risks are associated to it and the investors must stick to financially stable, large companies who have a good track record of disbursing dividends timely.
7. Invest on real estate
With time the value of real estate’s like house, land inflates and they can be a really good backup income source for your after-retirement life. You can receive monthly or annually rentals from that house or apartments that must be an add-on to your monthly income.
8. Savings account
Nothing can be a more dependable source than savings account for generating your money but this can facilitate you only when the interest rate is high.
9. Life insurance
If the life insurance plan offers periodical disbursement then it can be a source of extra income during your retired life.
Aside of these, if you are into job then you must know that every employer has different retirement program, you are advised to look out for the amount that you can contribute in order to enhance your pension plan.