Perhaps one of the greatest financial challenges you will face in your lifetime is preparing adequately for your retirement. Can you afford to retire? How will you fund your retirement? What unexpected events may occur before and during your retirement that can derail your plans for the future?
It is never too early to begin. Things to consider:
Traditional methods for funding retirement, such as Social Security and other retirement benefits, may not meet all your financial needs—especially when people are living longer and retiring at an earlier age. Taking advantage of your company's 401(k) and establishing an IRA is a good start. A financial representative can help you in identifying additional retirement funding solutions which may include:
Preparing for your financial independence needs encompasses more than saving for your retirement. To be certain that the funding for your retirement will be available when it is needed, you should also consider other potential life events that could affect your goals – events such as:
With adequate life insurance, disability income insurance, and other financial products, you can protect yourself from having to tap into your savings to cover other expenses.
Putting off preparing for retirement is like waiting until the last second to cross four lanes of traffic for your exit. It can be very scary and dangerous, and there's a good chance you'll miss your destination.