Taking stock of your financial position and Investing for Retirement
It is never too early to develop an investment plan that will assist you during your retirement years. All too often people ignore examining their financial position and generally live from pay cheque to pay cheque. Putting aside some capital for retirement and understanding your financial position is smart.
As you approach your final years of income generation, you may face a harsh reality of a much reduced standard of living during retirement years. There is no question that expenses are reduced after you retire, but you still must have a cushion if you suddenly face a health issue or you are faced with some expensive repairs on your property. The question is whether you are prepared for these possible negative surprises without facing a financial disaster. What can you do to be prepared for some of these unforeseen developments and how can you plan for your retirement years.
- Take stock of your current financial position. Talk to a number of investment professionals and get a handle on your finances. It is never too late to make this assessment and understand what you need to do to reach your investment goals. Are your goals realistic.
- Understand what your sources of income are and what your expenses are.
- What assets have you accumulated and what are they worth. Do these assets generate any return or are you just looking for capital gains. Will you have to sell any assets at retirement to fund your retirement.
- How much money do you owe and when do you hope to eliminate this debt.
- Have you developed an investment plan that will help you reach your goals.
- Have you hired an investment professional that can help you develop your investment plan.
- Set aside some time each quarter to review your progress in reaching your investment goals.
- Understand that you should take a long term focus in achieving your investment goals.
This article is not intended to cover all aspects of developing an investment plan but rather to get you to think about planning for your retirement and getting ready for that eventuality. If you have any questions on this topic, do not hesitate to contact us for further details.
