Why You Need a Professional Retirement Investment Plan

Why You Need a Professional Retirement Investment Plan

Having an investment plan is essential to meet your retirement dreams. It can also help you keep up with inflation and be prepared for financial emergencies.

Investing in a traditional individual retirement account (IRA) allows you to save money before taxes are taken out of your paycheck. This helps you avoid jumping into a higher tax bracket at retirement.

It’s Never Too Early

Whether you are just starting or are close to retirement age, the key is to save consistently. The power of compounding allows your investments to grow over time, which can make a huge difference in your savings.

Taking advantage of your employer’s retirement plan, such as the Boeing employee benefits program, makes setting up a regular savings routine easy. Having money automatically deducted from your paycheck can help you stay on track. A financial adviser can help you determine the right mix of investments for your circumstances, risk tolerance, and goals. Many people who start investing in their 20s and keep at it throughout the years can end up with a substantial nest egg.

As life changes, it is vital to review your plan and make adjustments as necessary. Having an investment advisor can ensure that you stay on track toward your goals and may introduce you to new options you might not be aware of.

It’s Not Too Late

Whether you’re in your 20s or well into your 40s, retirement planning is never too late to start. Regardless of age, the key to financial independence is to save money early on and invest it to earn interest over time.

Consider using your employer’s 401(k) or similar savings plan to get the most bang for your buck. You may also want to consider IRAs or other investment options.

In addition to saving, you should consider reducing expenses and preparing for healthcare needs during retirement. 

It’s important to periodically check in with your savings and retirement plans, no matter how far along you are. After all, your life goals and priorities can change over time, so a plan needs to be flexible, too.

It’s a Good Time to Start

Investing in your retirement is the only way to guarantee you will have enough money for your golden years. The earlier you start, the more your funds will grow with interest over time.

To calculate how much you need to save:

  1. Match your projected post-work expenses with your current income.
  2. Include things like housing, health care, food, and clothing costs.
  3. Add in the potential for pension income, social security payments, and any other source of regular revenue you might have.

Choosing the right investment options for your retirement plan depends on your goals and the risk you’re comfortable taking. It’s a good idea to diversify your investments with certificates of deposit (CDs), blue-chip stocks, and real estate investment trusts (REIT). Having different sources of income in retirement may help reduce your overall risk. Plus, if one source of revenue falls short, another may make up the difference. This can give you the peace of mind to enjoy your retirement.

It’s a Good Time to Finish

A retirement investment plan is a critical tool to have for your post-retirement life. It allows you to estimate the cost of the dreams and goals you want to fulfill in your post-retirement years – such as traveling, buying a new home, or taking on marathon running or novel writing projects.

Disciplined leaders make daily planning a keystone habit because it helps them be proactive rather than reactive. So, instead of going to work with a blank slate and drifting through the day like rudderless ships, take time tonight to set your priorities and create a daily schedule for tomorrow.

Schedule in blocks to finish projects, return calls, purchase gifts, and deal with surprises – those unplanned time drains that often blow up your whole day. This also allows you to review your schedule regularly, ensuring you’re on track to meet your goals. 

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