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Retirement Planning
Most people make the universally accepted assumption that in retirement you won't need as much income as when you were working and that your income tax rate will be lower. For a substantial majority of the population nearing retirement, these assumptions couldn't be farther from reality. With many people retiring early, and since they are still in good health, today's retirees are more active, have second homes and travel extensively. The average retirement age in the United States is 62, not 65 as might be commonly believed. |
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Inflation is the biggest threat to planning
Most people will say that you have to save more or receive a higher rate of return on your retirement savings in order to achieve your retirement planning goals. Starting to save for retirement earlier in life with smaller contributions is much more effective than starting late with much larger contributions. The power of time and compounding are a tough team to beat. The most important aspect of retirement planning lies in the calculation of the correct amount needed to provide for the desired retirement lifestyle. Sometimes people believe they have nothing to worry about because they have a significant amount of money saved for retirement and they'll have enough to survive and thrive through the retirement years. The biggest threat to this kind of thinking is the stealth threat of inflation. You can't see it but it's there. It's everywhere. Without proper inflation and return rate assumptions, retirement planning may seem to be effective and appropriate while actually being insufficient when factoring in the effects of inflation on the retirement portfolio. |
Financial Advisor Services
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Retirement Planning Links
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Copyright 1991-2007 Continental Five Insurance Group, Inc. All Rights Reserved.
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