So, you work hard and you focus on saving your money. You’ve now reached a point where you’re starting to think more and more about your financial future. What age should you retire? Will you have enough money saved for retirement? What kind of investments should you focus on right now? These are the kinds of important questions that can be answered by a Financial Advisor. Let’s take a look at a couple of common concerns hard working investors have.
People will either underestimate or overestimate the amount of money they’ll need to live comfortably during retirement. Some people think they’ll need a couple of thousand dollars, while others think they need a couple of million dollars. The amount of money you’ll need will depend on your definition of “comfortable.” If you plan on traveling to different countries every single week, flying in private jets, and living in lavish hotels week after week, then you might need tens of millions of dollars to live comfortably during retirement. Talk with your financial planner to estimate how much money you should be saving.
What kind of retirement plan should you choose? Most people have either a 401(k) or some type of IRA. A 401(k) is considered a great employer-sponsored retirement plan. It allows employees to receive more tax-deferred savings, and also allows employers to match your contributions. However, more and more people invest in IRAs because they provide more investment options. Talk with a financial advisor in order to help you determine which one is better for you.
Having additional investments is also important for your retirement. Any wealth management planner will tell you that having things like gold, stocks, and real estate in your portfolio is the best way to go. Real estate has always been a very profitable investment, and the right stocks can provide you with huge returns. Gold does great at maintaining its value, and is seen by investors as a means of security.
There are several more concerns that tend to catch the attention of future retirees. Again, if you’re looking to target a certain amount of savings for your retirement, talk with an advisor to figure out the right amount. Don’t forget to invest in traditional plans like the 401(k) plan or the IRA, and remember to seek additional investments as well.