Factors To Be Consider In Retirement Planning 1. Starting from the beginning . The earlier you save money, more time your money will grow. Set the time needed. Make savings to retirement as a priority. For planning and follow plans as well as set goals for yourself your own.
2. Avoid risk of high on retirement funds . Some common types of risk occur of retirement funds are: a) deficit. Deficit may be due not have savings sufficient time to work or too conservative with investments you are. When investing with too careful, you run the risk of lack of money upon retirement. b) the risk of loss of investment principal. The risk caused by change or increase in the price within a certain period.
3. Plans for the needs of long-long You need to plan for "Non-market losses", which caused by factors such as care health and long term care.
4. Expectations of your life Note the age of each person who died during the accordingly, increase the amount of total and divide it by the total people. With it you can calculate longevity of life. Make sure that your needs will be covered even if you are over the age of longer than you expect, based on the tables life and your own health factor.
5. Budget in later retirement. Some expenses during retirement may be less than spending now. The taxes payable should have been reduced. In general, loans and mortgages have been settled so home loan payments reduced. Work-related expenses such as transportation, clothing, etc. also been reduced. Payment of utility bills, food , gifts, contributions , car and property insurance things will increase in line with any increase occurs. Health and insurance expenses health will increase. cost to traveling, vacations and entertainment will increase as leisure many retirement .
6 . Lending money Do not easily lend money to friends and family. Suppose that your financial adviser allows you to lend money.
7 . Estimate how much money you can you remove Set the annual production rate money. This is an important matter in financial planning retirement. Be careful so as not to produce total the same percentage of the estimated return on investment.
8 . Plan your taxes and inflation impact Inflation may reduce the value of investments you as the tax imposed on return on investment. On the average inflation at a rate of 3 percent per year since several decades. This may not be too much, but try to imagine if the RM100, 000 today is only worth RM74, 000 in the last 10 years on inflation rate of 3 percent per year. Seek the services of a financial advisor or professional tax consultant for specific advice about your position.
9. Try to block any attempt to threaten your account retirement According to financial planners, two of the bad things that happen to retirement planning is 24Hour Internet access to account and the daily price.
10. Realistic Value of monthly retirement income Source of income during retirement is the pension, EPF savings, benefits fixed deposits, dividends from shares company (or unit trust ) and total money received from matured insurance policy.
11. The first rule about savings is to pay for you. Therefore, when you receive a paycheck every month, put some money in your retirement fund , before money is used for expenses other .
12. Establish emergency fund available money in it, if you need money immediately. This is to avoid taking your money of pension funds in the event of urgency. 13. Think of moving home the smaller and lower price, because you do not need great space for the kids you have not lived together. Money from old house with a surplus sale purchase a new home can be used for other needs. 14. If you plan to working after retirement, trying to make relationships and looking for opportunities when still work.