Retirement is a tricky thing, one day you feel good about it as you will be relaxing, finally, and the other day you feel worried about your finances. But people who plan for their retirement beforehand may have little or nothing to worry about.
Retirement planning is a continuous process, and you would have to try to foresee things. Although, no one can predict everything and it will be better to try to be close enough can do some benefit. You can get advice on retirement planning via http://www.foxgroveassociates.co.uk/individual-clients/retirement-planning/
Many people are too scared to retire because they are worried about how things will go when they cut that income off. However, retirement planning is not hard science, and following these steps may let you secure a future.
1. Retirement Planning – Assess your financial situation
First of all, make an inventory of all your current assets, liabilities, incomes, and expenses. You can sit with your retirement planner and make an estimate of what your responsibilities and expenses would be. When you’ve retired, some expenses may stay the same, like groceries and insurance, and others.
However, some expenses may increase like travel costs, vacation costs, and spending less on growing-up kids. Some expenses would also be taken care of by pension and social security. Highlight your worries and questions that haunt you at night and discuss them with your planner.
2. Calculate the value of your assets and Liabilities
Here are a few tips on how to calculate the value of your current assets.
- Write down the current amount in each of your accounts where you keep cash and liquid savings. These include checking, savings, and money market accounts and certificates of deposits.
- If you have saving bonds, then calculate and determine the current value or call the bank to find out the current value.
- Call your agent and find out the cost of your whole life policy also.
- Invested in stocks, bonds, or mutual funds, then check the value on financial websites or from your last statement.
- Use the current value of your house and other real states.