It is a common myth among people that retirement planning involves some number crunching. However to the contrary planning for the golden years of life is easy and all it takes is a little planning. Today numerous players in the market provide a comprehensive range of retirement planning services. A little research and proactive approach can work wonders for those looking to build a comfortable retirement nest.
In the section below a retirement planning advisor discusses the various factors that affect the retirement planning-
Age - An early retirement would mean that the number of retirement years would be longer. This in turn would mean more expenses. Therefore, it is important to consider the tentative age for retirement wisely as this would directly affect the retirement income of an individual.
Asset allocation - The sooner an individual starts to plan for a retirement the more time he/she has for investing in instruments that provide better results in the longer run. However, this does not imply that an individual should abstain from aggressive investments. A good asset allocation strategy helps in building a sound retirement nest without the risk of outliving the income. The retirement planning services offered by a professional provides assistance for making a sound strategy involving proper asset allocation.
Inflation - Inflation is another factor that influences the retirement nest. This is because the inflation affects the expenses incurred by an individual. It is quite natural to sustain the same lifestyle even after retirement but the rates of inflation would not remain constant until then. This would mean that things will be costlier and eat in to the retirement savings.
Sources of Income - The sources of income for a person necessarily does not mean the salary he/she gets from his/her job. There may be alternative sources of income that may include pensions, social security, IRAs, personal savings, 401(k). Many people also work in various part time positions in order to earn an extra income.
Expenses - One of the major considerations while saving for a tentative retirement fund is that of expenses. Most retirement programs or calculators have generalized the common expenses that an individual bear. These include include mortgage, insurance premiums, taxes, medical expenses, living expenses, travel, entertainment, education, home improvement or even a dream of starting a new venture.
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