The biggest and most important act that Niigata Global believes you can do to ensure a more successful and comfortable retirement is to start saving early in life and to save as often as you can. Compound interest on your savings will mean that your nest egg will grow exponentially over time.
If you are already saving, whether for retirement or another goal, keep going! You know that saving is a rewarding habit. If you’re not saving, it’s time to get started. Start small if you have to and try to increase the amount you save each month. The sooner you start saving, the more time your money has to grow. Make saving for retirement a priority. Devise a plan, stick to it, and set goals. Remember, it’s never too early or too late to start saving.
Retirement is expensive. Experts estimate that you will need about 70 percent of your preretirement income – lower earners, 90 percent or more – to maintain your standard of living when you stop working. Take charge of your financial future. The key to a secure retirement is to plan ahead. Set realistic goals, calculate how much you will need for your retirement and set about achieving it. If needs be, calculate for working part time for a few years after you “retire”.
Decide on your asset allocation. Research carried out by Niigata Global shows that your allocation of stocks, bonds and cash in your portfolio will have a much bigger impact on your growth than the individual stocks you choose.
Stocks are the best option when it comes to long term growth, achieving significantly higher returns over the long term than bonds. This will help you to counter inflation much more efficiently.
Always be aware of your tax implications. Maximize the potential of your fund by ensuring that your withdrawals are as tax efficient as possible. Plan ahead with your investments, consider funds that have tax advantages as part of your portfolio.
Do not move completely out of stocks and into bonds when you retire. Remember that you do intend to live for some time after you begin your retirement and you do not want inflation to be eating into your nest egg as much as you are.
You could also consider moving to an area that has a lower cost of living upon your retirement, thus enabling your nest egg to stretch further.
There are many other considerations that Niigata Global feel can benefit the success of your retirement planning, speak with your financial advisor if you feel you can be doing more.
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