We are all looking for colorful retirees, traveling, visiting grandchildren, hobbies, golfing, reading a book, or relaxing on the canopy Rock Climbing.
But before we're too loud, we need to make sure we're prepared for the three threats to retirement. There are other threats as well, but these are three "normal" and "expected" and if they do not plan, then there is a great chance we can survive our money
• Inflation
• Real Prices of Returns
The most important reason for planning your finances is to keep your money and hopefully surpass inflation. Inflation is a quiet killer of money's purchasing power. Prices usually increase over time. The plan must cover these increases.
Financially, at least, it must keep its purchasing power in order to keep up with inflation. If all the money is invested in the bank and delays the plan, it will actually make a decision and will begin with a plan .
Inflation is Growth Costs of Goods and Services. We recognize that things will go more than next year. This is expected for the strong economy, which is growing steadily. Over the last decade, inflation has been very low over the last decade, compared to historical figures, but is likely to increase again.
The real prices of return
Not all investment opportunities keep it Even before inflation or inflation. You have to invest in stopping inflation and affecting taxes. The actual rate of return I am talking about: (a) your money's increase after you have taken the tax collection and (b) the rising cost of goods and services (inflation). Let's not forget that purchasing power comes from domestic money and the ability to buy after the effects of inflation. When calculating the actual rate of return, pay attention to taxes and inflation. Historically, the "light" investments of CDs and other bank deposit accounts do not keep you from inflation either. You Need To Provide Part Of Your Money To Overcome The Inflation
The Expected Life Quality
The Ultimate Cause To Establish Your Financial Plan Is Important That Average Life Longer Life Expectancy And longer. You have to make a financial plan that predicts the increasing lifespan.
I said this before, and I'll say again, "You do not want an old lady with constant income." You need to create a lifelong growth plan! If there are only ordinary bank deposits (CDs, checks, savings, money market accounts), then you can expect a lifetime of 21.39 years for women's expectation. . This means that you will live with a 50% chance longer than 24.37 years. If you invest money into bank deposit accounts you can quickly lose your purchasing power and get in trouble in the coming years.
How much do you think a stamp, a car, a home or a rocking chair will cost for more than 24 years?
Whether they are based on death, divorce, or unique choice, women at a certain point in their lives account for up to ninety percent of women being given the chance to be solely responsible for their money. Even in strong, healthy marriages, many women have to be more interested in the financial situation of households. Now, when baby dolls move to retirees, the number of women who find themselves financially alone will increase dramatically.
Why do you bother creating the plan? Because if not, these three threats are likely to affect your color retirement.