Retirement Planning – Wealth Building
We all wish to retire rich, retire happy. Adequate money to lead a comfortable life is obviously a necessity for retirement. For this it is important to build and preserve wealth. It may in the form of properties that yield rental income during your retirement, saving plans that give rich interests or any other form of regular income and wealth, but some sort of financial security is essential for those crucial years. It does seem morose to plan for retirement when you are in your prime years of working. However, wealth building needs to start early – it becomes very daunting at an advanced age or in the unfortunate event of an illness or accident that incapacitates you terminally.
· The amount of money you save and invest
· The growth rate of your money
· The amount of time it has to grow
The actual challenge is not understanding these simple principles but in
translating this knowledge into results that matter. In other words, it is the
implementation of wealth building plan that would revolve around the
aforementioned principles.
When you are serious about building wealth for a comfortable retirement,
it is important to not just save but also invest. There are a multitude of
retirement plans and other saving schemes offered by banks as well as public
and private investment agencies. Investment can also be made in real estate,
gold and stocks. Investment in real estate is one of the safest options that
can guarantee returns in the form of a rental income or capital gains. While
investing in stocks, you should subdivide your portfolio and never own more
than 5 or 10 per cent of your portfolio in the shares of a single company. It
is always good to diversify your savings and funds for investment.
Debt is a disease that enslaves the borrower. This is why building
wealth for retirement not only involves saving and investment but also the
avoidance of debt. Credit card balances
must be paid off month on month and actual use of such cards should be
minimised. The high interest rates that you pay on outstanding credit card
balances can completely erase any gains made from your investments. You should
also accelerate your mortgage loan repayment if any. Switching to an offset
mortgage can save you a substantial amount in interest as well as reduce the
term of your mortgage loan by a number of years.
Saving and investing early can give more time to your money for growth
and paying off debts ensures that creditors do not create any problems during
your retirement. This is integral to building wealth.
If you really wish to retire rich, retire happy, start
building wealth now. To know more about ways to a financially secure future,
visit http://prosperousretirementplanning.com/
In : Wealth Building
Tags: wealth building retire retirement planning retirement options early retirement