Since none of us knows how much time we have left on this Earth, I choose to err on the side of longevity. When putting together a retirement cash flow plan for my clients I assume age 95 for life expectancy. With this in mind, put these tips to work now to make sure you have a successful retirement.
1 It’s never too late to start planning. Although it might be impossible to know how long you’ll live or what your health may look like in the future, there are things you can plan for now that can set you up well for retirement. Figure out what at age you plan to retire, how much you are saving, what your estimated expenses are, how much income you will need to live on and how much you already have saved for retirement. Don’t forget that inflation and taxes will have an ever changing impact on your spending.
2. The sooner you start saving, the more time your money has to grow. When I talk to people just starting out in the world, I always tell them to put 10% into their payroll deducted retirement plan. Make sure that you also have enough cash on hand for emergencies. I know saving a bunch into a low interest bearing savings account is not jazzy, but it will save you in case of an emergency.
3. Don’t forget to invest the money you save. Compound interest can work wonders for your money. Just as with saving, the earlier you start investing, the more your money can grow. Look at the options you have available in your retirement plan and put together a diversified portfolio. If you are diversified your investments will not all move in the same direction at the same time. Diversification should provide some protection if you do not have all your dollars invested in the same items.
If you are still working, time is your biggest asset. Don’t waste it.

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