Once you’ve created a financial safety net with an emergency fund and proper insurance, you can start saving towards more long-term financial planning goals. A common long-term goal is to save up for retirement. While it may seem like a long way off, it’s a good idea to start saving for it as early as you can.
In this article you will learn:
- How to make way for a Secured Retirement
- Planning for a Secure Financial Future
- The Planning Process
- Determine Your Retirement Needs
- Financial Considerations
- Plan for Retirement
Start Your Financial Planning and make way for a SecuredRetirement
Your financial goals and priorities will likely shift withtime. To help prepare for the road ahead, ask yourself what matters to you and your family long term.
Here’s how you can get started:
Review Your Plan
- Take a look at your personal financial plan, with a focus on what’s most important to you. Askingyourself some key questions—about where you arenow and where you want to go next—can help youbetter prepare for the path ahead.
Help the Ones You Love
- At the end of the day, few things are more importantthan supporting the ones you love. As you assessyour personal goals, think about what you want for your family and closest friends as well.
Planning for a Secure Financial Future
Whether you are on the verge of retirement, sailing alongmid-career or just starting a practice, it is important to think ahead and plan for your future.
For many reasons, including lengthy training, high student loan paymentsand the time commitment required to build and managethe role as a teacher, it can be overwelming start planningyour retirement early to make your money grow.
- Set your Financial Goals
- Plan for Taxes
- Build an Emergeny Fund
- Manage Debt
- Protect with Insurance
- Plan for Retirement
- Invest Beyond Your Pesion Plan
- Create an Estate Plan
The Planning Process
A good place to star your retirement planning can be to envision the lifestyle you want when you retire or how you would like to finish your career.
Ask yourself if you would:
- Gradually wind down your teaching
- Cut back to take part-time classes
- Start a second career or explore new business ventures
- Leave the teaching entirely
Review Your Present Financial Situation
An evaluation of your current finances will help you plan for what you will need in the future.
- Calculate your net worth – your assets minus yourliabilities
- Organize your expenses in order to understand yourspending patterns
- Examine your retirement and other investments
Although calculations can be done manually, the use ofpersonal financial software such as Quicken or Money may facilitate the process.
Determine Your Retirement Needs
Based on your vision for retirement there is always a good idea to work with a professional financial planner to decide how much money you will need to set aside and which investment vehiclesare best for you. When you determine your retirement needs you should consider factors such as:
- The percentage of your annual preretirement incomeyou will need in retirement
- When you plan to retire
- The rate of return on your investments
- Inflation
- Taxes
Review Your Retirement Plan Periodically
It is not unusual for ideas about the future to change over time. Additionally, unanticipated life circumstances mayrequire you to change your course. Review your retirement plan with your financial advisor every year or two and revise it as often you need to help yourself reach your goals.
Remember, one of the key things for a successful retirement plans is to create a customized plan that you are comfortable with and one that will help you maintain a lifestyle consistent with your desired retirement plans. Put concrete steps in placeto reach your goals and stick with your plan over time.
You are always welcome to meet with one of us at Teacher Retirement Plans – you can schedule your free second-opinion here.
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