What is Retirement Planning？
Key Takeaways
● Retirement planning involves setting a financial goal for retirement and finding out the conditions to achieve that goal.
● A retirement plan can support the lifestyle you choose and preserve your savings.
● 401 (k), IRA, and Roth IRA are common retirement plans.
Understanding
A retirement plan is part of lifelong financial planning. It maps out your financial goals and their conditions.
Key stages of retirement planning include: determining your income sources, managing your assets, and monitoring your budget. The primary objective is to ensure your retirement budget aligns with your expectations.
Why retirement planning matters
We all grow old and will retire one day. Retirement planning is necessary if your income in retirement cannot fully cover your expenditure.
Top reasons for retirement planning may include:
1、Fulfill retirement aspirations
2、Support lifestyle
3、Preserve savings from inflation
4、Protect against emergencies
5、Live a longer life
6、Save for the loved ones
How to make a retirement plan?
1、Set your targets. Consider when to retire and how much money is needed.
2、Calculate how much should be saved monthly to reach your retirement goal. Remember to take inflation into account.
3、Pick one or more retirement plans that meet your needs. Common programs include 401 (k), IRA, and Roth IRA.
4、Review your plan regularly to evaluate how well it manages your assets and meets your expectations.
The bottom line
Retirement planning is relevant to us all.
The earlier you start thinking about it and working on it, the greater benefits you will enjoy later in life.