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A Quick Guide On How To Properly Plan Your Retirement

It is imperative that you start planning your retirement long before you have to retire. Doing so gives you time to put everything in place so you do not have to rush doing these things once your retirement is close. There are a few things you need to do. This quick guide will help you know what to do and focus on when planning your retirement.

A Quick Guide On How To Properly Plan Your Retirement

It is imperative that you start planning your retirement long before you have to retire. Doing so gives you time to put everything in place so you do not have to rush doing these things once your retirement is close. There are a few things you need to do. This quick guide will help you know what to do and focus on when planning your retirement.

Invest for Growth

If you are at least ten years away from retirement, it is important to invest in growth investments. Options like stocks might not seem to have the growth you are looking for right now, but they have been shown to perform better than most other investments over time.

It is also important to have a diversified mix of investments. Include bonds, commodities, mutual funds, and other investments that fit into and reduce your risk tolerance in your investment portfolio. Investments that pay a sizable dividend are also a good option as you can re-invest these dividends for even more growth and then use the dividends as a source of income once you retire. If the dividends are good enough, you could even have a sizable income without liquidating any of your investments.

Max Out Your Retirement Accounts

If you are able to, always contribute the maximum allowed into your investment accounts. Also, see if your employer matches your contributions and try to fulfil all conditions required for them to do so.

When close to retirement, consider consolidating all your retirement accounts into one. Doing so will make it easier to manage your investments, in addition to giving you a clear picture of where you stand with investments.

Pay Debts Before Retiring

It is always best to eliminate all your debt when planning your retirement to save and invest as much as you can. The one debt that bothers a lot of people is their mortgage. Many people end up paying their mortgage into their retirement, which is never a good idea.

Talk to your mortgage provider to see whether you can pay the mortgage before retiring. This way, you reduce the amount of retirement funds that will have to go to paying your mortgage.

Also, consider doing the same for all credit card debt, loans, and other types of debts.

Plan Where You Will Live

Where you eventually choose to live once you retire will have a huge impact on the life you end up living and your retirement expenses. If you already live in a rental property in a city, moving to a low-rent apartment somewhere else could lead to a sharp decline in your expenses.

Also, moving to exotic locations can improve your life in various ways. For example, moving to a country like Malta allows you to be close to multiple European destinations, gives you access to excellent healthcare, and offers various employment opportunities if you move there before you retire. The good news is that you can also become a resident and eventually a citizen, which comes with the massive advantages of having a second passport.

According to the maltasothebysrealty.com website, you can become a Maltese resident by investing in a property in Malta. Although the investment has to be held for at least five years, you still get to live in one of the best holiday locations in the world. The country has sun 300 days out of the year, has lots of things to do and see, and favourable taxes, which will come in handy when you are retired.

Know Your Likely Monthly Expenses

To know how much you need to save and invest, you should have an idea of how much your retirement expenses will be. If you have little to no debt, your expenses will be low. Also, remember that healthcare expenses increase as we get older, and this is something you need to factor in when doing your calculations.

Planning for retirement is something everyone must do if they want to live comfortably once they are no longer working. Putting a solid plan in place will allow you to live in comfort without needing outside assistance. The tips above are a great place to start, and you can always consult a financial advisor to help you smooth out the smaller details of your retirement plan.

 

 
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