If you’re in your mid-20s or 30s it’s probably hard for you to think of your life after retirement. Maybe you think that you can probably skip this type of article and get back to it in a couple of years. However, as a forward-looking person, you should realise that it’s never too early to think about your future happiness and well-being.
It’s up to you to decide, but for now, we’ll address those readers, who are actively preparing to start their after the hard-work life and, for those who already enjoy the benefits of permanent vacation.
Generating income for retirement, an easy task or a real problem? Let’s say, it’s pretty complicated, but manageable, especially if you’re ready to delve into the world of investments.
There are several approaches at your disposal that you may choose for your savings: risky and conservative. It’s a common believe that someone who has a substantial nest egg can relax and simply live on the interest and dividends. But, what is a substantial nest egg? One million dollars, two? Besides, over the course of time, the interest rate is usually getting smaller and smaller, that’s why it’s vitally important to re-evaluate your investment portfolio and retirement plans every year.
No guts, no glory: is it true?
The thing is, you need to find a perfect balance according to the budget you have and the retirement plans you hope to build.
Even if it sounds tempting during bull runs, a sudden market crash can spoil your plans. Depending on your nest egg, you can consider investing in any of the following: global and corporate bonds, US and emerging market equities, high-yield and short-term bonds, large-cap dividend paying stocks, etc.
The pool of available options is rather large and makes retirement planning a bit confusing. That’s why hiring a good and reliable financial advisor is always a brilliant idea. Please make sure you can trust this person, otherwise, don’t hesitate to address another consultant.