Retirement Planning in Easy Steps

June 6, 2009 - PRLog -- As retirees have to depend on fixed sources of income, there are vital retirement planning steps that you need to follow :-

Wise savings and expenditure :

One of the important steps that you need to take to make your post retirement period financially secure is to increase your savings. Proper retirement planning helps you to keep track of your savings and expenditure. You should always try to keep your expenditure within a limit. If you see that the expenditure has exceeded the income, it is better that you cut down on your expenses and add to your savings. Savings provide a steady source of income after you retire form the job and also useful in case of emergencies.

Have a retirement account  : http://www.retirement.futureyears.com/401-k-account/  

Having a retirement account helps you to make good savings and help you have financial stability in the post retirement period. There are different kinds of retirement accounts that you can opt for. You can opt for a 401 k account or an IRA account. Usually, 401 k accounts are employer sponsored savings accounts and provide you with various benefits. You can choose the Individual Retirement Account or IRA. There are two types of IRA accounts: traditional IRA accounts and Roth IRA accounts. The IRA accounts provide you with good benefits on your funds and are also entitled to various types of tax exemptions until you withdraw the amount.


The rate of withdrawal

In usual cases, the rate of withdrawal needs to be equal to the money required to withdraw to fulfill various income sources like pension and social security. As such, it is advisable to keep the initial rate of withdrawal within 5 %. Some tax issues also needs to taken into consideration.

Have a diversified portfolio

If you are thinking about investing your money in the stock market, you can take vital tips from the retirement planning steps. Having a diversified portfolio helps you enjoy good benefits in the stock market. Through diversification, you can create a balance between the revues and the expenditure. Your money is also kept secure against various market conditions. If you are aiming for more profits, you can use the dividends that you get and reinvest them. Many direct purchase plans or re-investment plans are available which enable you to reinvest even if you do not have to pay commissions.

Finding the right accommodation : http://www.futureyears.com/retirement-locations/us/

There are many retirement locations, communities and retirement homes which provide retirees and older adults with various lodging facilities and services. You need to opt for the retirement locations as per your needs and budget.

Life expectancy :

Nowadays, retirement planning steps also put emphasis on the rate of life expectancy. With the increase in the rate of life expectancy, the rate of the investment withdrawal also increases. As such, it is better to be a bit prudent and plan in advance.

For more Retirement Planning information ,Visit :  http://www.futureyears.com

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Http://www.futureyears.com provides comprehensive information on retirement to help you make an efficient retirement plan.