One of the major misconceptions that exist and has been following for over half a century is a financial adviser is capable of providing suitable advice and carry out the necessary processes of retirement planning as well. Gone are those days when people could easily lay back and live the lives easily, being assured of their future lying safe and secure. The economy of the nation has already had its own share of crisis and hence the entire strategy of retirement planning needs to be dealt with differently.
Solomon’s Choice Capital has been dealing with several such financial investment options, and they have significantly noted down the changes that have across in the market. While the market received a huge blow in 2008-2009, they have found how the portfolio of the retirees have gone down by almost 20 to 30 percent, and the main reason behind this being their dependence on the stocks. All these debacles actually highlighted one single fact, the need for truly qualified individual advisers, who have the skill in designing the art of retirement planning.
There have been several surveys that have been carried out, and each of these surveys has brought one prominent fact. Most of the individuals, when asked about their superannuated life, have only been possible to give some rudimentary ideas, without any proper sketch or chart of what it will actually look like. It sounds to be good enough to imagine the beautiful summer days on the luxurious yacht with Cocktail parties to attend every weekend. But it is not easy to afford them as it sounds to be because there will be no steady source of income then. In order ensure this secured life, there must be substantial planning right from the very beginning of their career.
Going by the suggestions of Solomon’s Choice Capital, retirement planning actually demands to eschew all the theoretical rules and make some practical decisions of life. Here are the following three steps that need to be followed:
- It is quintessential for the retirees to establish their goals and determine all the activities that they are interested in indulging in. This proper estimation will indeed help in budgeting the cost of life after retirement. This even includes whether the individuals want to leave some form of financial legacy to any of their family or not.
- Cash flow is a significant concern, and reviewing the present day cash flow is essential to determine what will be needed after retirement. There will be some expenses that remain stagnant, and subtracting all of them from the present cash flow will help one anticipate the saving that should be done to make sure days in future meet ends comfortably.
Planning a retirement is pure maths, and hence people must abide by the expert help that will ensure the calculations to be precise. Planning is never done in a day or a week or even a month. It is years of efficient planning that guarantees the best days ahead of retirement.