Retirement Financial Planning
The Importance of Retirement Financial Planning
Planning for your retirement should be one of the key aims in your long-term financial goals. Retirement financial planning can help ensure that you have enough money to live on - and enjoy your life - in your retirement years. Local area financial planners can help you get a handle on your retirement financial planning, but it's important that you understand some key facts about today's world and the world of the future.
Savings Isn't Enough Any Longer
In years past, savings accounts paid out decent interest rates - 7 to 8 percent annual percentage rates weren't unusual. In those years, solid retirement financial planning was often based on a retirement savings account. Today, interest rates for most savings accounts at Howey In Hills FL banks hover below 1 percent, making it nearly impossible to do any meaningful savings for your future retirement.
Real Estate Is No Longer a "Safe" Investment
For generations, real estate has been the quintessential safe investment. For most Howey In Hills FL residents, their home is the cornerstone of their wealth. When the real estate bubble burst a few years ago, it turned that conventional wisdom upside down. If your retirement financial planning had revolved around the nest egg built into your house, you may find that your home is worth far less than you expected.
Investing In the Market Can Be Risky
Stock market investments, mutual funds and bonds are often the lynchpin for retirement financial planning, but investing in the market can be risky. The 2008 financial crash underlined just how risky stock market investing can be. On the other hand, investing in the stock market through mutual funds and other instruments is among the most profitable forms of earnings as part of your retirement financial planning.
Insurance Products Are Not Suitable for Everyone
Many Florida insurance companies offer insurance and financial products that can be a part of retirement financial planning. Annuities, trusts and the like can be a valuable part of your retirement planning, but they are not necessarily for everyone.
Diversification Is the Key to Stable Retirement Financial Planning
The most important fact to keep in mind is that retirement financial planning is a complex subject, and it gets more complex as time goes on. No one financial strategy or goal will provide a stable source of funding for your retirement. The key is multiple streams of income, and the best way to provide them is to work with an experienced and knowledgeable expert in retirement financial planning.