Retirement plan: Tips to keep you financially safe and debt free

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People approaching their golden years are mostly concerned about their income post-retirement. They are always trying to locate a source of income that will provide them the financial independence without having to put too much of their assets at stake.

Hence, in order to fulfill their post-retirement needs it is important for the people to create a well thought out plan in order to support them.

Retirement planning tips for all

Here are the fundamentals to create a successful retirement plan:

 

1.Systemic withdrawal plan

Many a times, people buy annuity as a long term investment plan. However, once people start getting the returns from their annuities, then it becomes impossible for them to get their money back. So, in this case systemic withdrawal plan can fill in the vacuum. This is because people can keep this investment along with their non-retirement and retirement accounts. This will allow them to stipulate an amount that will be distributed by the investment companies on a monthly, quarterly and annually basis.

2.Savings fund

It is very important to use funds from retirement accounts like IRA or 401 (k) with a lot of care. A good number of people recklessly use these funds to make their ends meet. As a result, they end up losing all the money very fast.

3.Budget

This is the most important part of the retirement plan. People should try to lower their costs and keep a track of their investments. They should not carry multiple credit cards with them all the time. Instead, they should use a single bank card and conduct most of the transactions with cash. Moreover, they must set aside a definite amount for all the household expenses, financial liabilities, medical costs and so on.

4.Debt payment

It is very important for the people to list all the details of their loans and the name of their creditors. They should make use of debt repayment calculators that will help them to make the payments comfortably. However, they should try to make extra payments in order to clear off the debts fast. This will help them to save on interests paid on the loans.

5.Life insurance

Though life insurance policies are not always regarded as a part of the retirement plan, yet it can become an additional source of income after retirement. It will also help them to cover up their medical expenses in care of long term care. So, long term care insurance policies can serve as financial support in case of medical emergencies.

Finally,

it is very important for all individuals to save at least 10% of their overall annual income for retirement purpose. As a result, this will help them to amass a good amount of savings for their life post-retirement.

Author’s Bio: Neil is a financial writer. He has written many finance articles for several sites and blogs. To know more, you may visit https://www.facebook.com/debtconsolidationcare

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