Friday, 27 March 2009 13:45
by
Andy
Retirement is a major life event but there will be several other significant financial events along the way. If you can address some of these concerns you will be better prepared for your retirement years. 1. Have a basic financial plan2. Married or not married, have children or childless, protect your income and your assets with disability insurance, life insurance and properly insure auto, home and other assets.3. Have that rainy day fund of three to six months of income built. Following is a general guide of financial activities to accomplish during your progression to retirement.
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20’s |
30’s |
40’s |
50’s |
| Pay off credit card debt |
X |
|
|
|
| Reach the workplace savings match |
X |
|
|
|
| Raise retirement savings to 10 – 15% of pretax income |
|
X |
|
|
| Establish basic estate planning documents |
|
X |
|
|
| Set a retirement income goal to establish a nest egg goal |
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|
X |
|
| Re-calculate retirement savings amounts to reach next egg goal |
|
|
X |
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| Track progress on reaching next egg goal and make adjustments |
|
|
|
X |
| Consider long term care insurance |
|
|
|
X |
There are certainly several other considerations along the way to retirement. Hopefully this provides an important primer for you to start planning your progress towards the retirement you desire.