Preparation is key to a comfortable retirement. Here at Retirement News Today we’re always looking to pass on information that might help you get there.
We found a Forbes article that lists essential principles of planning for retirement. The first one on the list is to plan for the long run. Your retirement goals should be made based on planning to live, not to die -- that means spending less and being patient with spending decisions.
Number two is don’t leave money on the table. You should be able to spend money during your retirement, but also leave behind a legacy. Some examples of ways to enhance your retirement efficiency are taking IRA distributions or harvesting capital gains.
Number three is to set reasonable expectations for portfolio returns -- don’t expect them to match the historical average. Lately interest rates have been low, which means at least bond returns will be lower in the future. The article says at the very least, dismiss any retirement projection based on eight or 12 percent returns, as the reality will likely be less.
If all of this has you concerned about your retirement plans, it is strongly suggested you look for an established retirement planning professional to help you get organized and set effective and realistic goals.