For most people, retirement is perhaps one of the most important phases of their lives. Because of its importance, it needs to be carefully planned for, to make it possible for the retiree to enjoy his golden years in peace and comfort. For this to be achieved, a percentage of one’s income is set aside or saved for the purpose of gaining financial freedom in retirement thus making the need for gainful employment optional rather than necessary.
But it’s not as easy as it sounds. For many people, whether employed or in self employment, the goal of having a comfortable retirement, is an incredibly elaborate and extensive process that needs careful and focused planning and years of patience and persistence. Interestingly, the process of planning and managing retirement finances does not end when one retires. It ‘s an ongoing responsibility that is carried on well into the retiree’s sunset years.
Many people attempt to make their own retirement plans but only a small percentage manage to come up with a plan that can sustain them through retirement. The bigger majority, try it with devastating consequences, ultimately making them lead difficult, miserable lives full of financial challenges. Whereas it’s good to be actively involved in the planning of all matters that affect your financial future, it’s wiser to engage the services of a good and professional financial adviser to take care of your retirement planning. This is true irrespective of one’s social, financial or educational background.
It’s important that when choosing a financial adviser, he must be well trained, qualified and possess the necessary experience to plan and prepare a good retirement plan that will ensure your comfort. In doing this, they will help you discuss you financial agenda and answer a number of questions that will determine the plan that best suits your needs. For instance, it’s important to know how much money you will need to support your retirement. This will help him understand the type of lifestyle you expect to live. Another equally pertinent issue is the amount of money you need to have saved by the time of retirement and how the money should be invested to boost retirement savings. With a good financial adviser, the money you have accumulated on retirement can be invested to enhance your income in retirement For success, create a plan and vision for your future and closely work with your financial adviser by providing all your bank statements, share certificates, superannuation statements and insurance policies so that he has no difficulty in planning your retirement.
It’s also of paramount importance that communication lines between you and your adviser remain open and cordial so that any issues that are not clear are quickly thrashed out. Equally important is the need to clearly tell your financial adviser what your expectations are, so that your retirement plan can be made with your expectations in mind.
Since the retirement plan is about you, ensure that you understand everything that the adviser is planning. When issues are not clear, seek clarifications and explanations because it’s your money and you have every right to understand how it’s being invested.
Your financial adviser should also be able to guide you on how to minimize your tax and help you determine the type of life insurance that best suits you. This is important when one considers that old age brings medical problems and marked increase in healthcare expenses. This can easily compromise the type of lifestyle you want to lead as the medical expenses might wipe out your savings leaving you in misery. To avoid such a scenario, a medical insurance cover and long term care insurance is the best way to insulate yourself against such expenses.
Lastly he should be able to discuss with you whether there is need for you to look for part time employment to boost your retirement income. On the face of it, these issues look simple enough for one to attempt to deal with, without the assistance of a financial adviser, but the truth is, retirement money should and must never be experimented with. One must remember that after retirement, especially if it is at the age of 65, medical care increases due to diseases associated with old age and the body is no longer strong enough for gainful employment.
In conclusion, it may be possible to handle matters of retirement on your own, but there is need to seek expert advice so that all your needs are handled and executed by someone who understands the intricacies of retirement planning. This is the surest way to go.