Retirement Planning Checklist - Part 1

Retirement may seem far away however, it is a bonus if we could start thinking and act it earlier before reaching that golden age! I found an article from NST that is quite useful for us.

Below are the "Retirement Planning Checklist":-

1. Start Early
The sooner you start saving, the more time your money has to grow. Put time on your side and make the retirement savings a high priority. Devise a plan and stick to it and set goals for yourself.




2. Avoid being too risky with your retirement $$$
The most common types of risk related to retirement saving are:

• Shortfall risk - can occure either from not saving enough during working years or from being too conservative with your investment.
  
• The risk of loosing principal - often associated with volatility, or the price fluctuations within a specificed period of time. Although volatility is inherent in the markets, time is on your side.

3. Plan for long-term needs
Plan for a "non-market losses", catastrophic things such as health care and long-term care. Medicare and private insurance will not pay for most long-term care. Weigh the cost of long-term care premiums against the cost of paying for care out of your pocket.

4. Life Expectancy
Find the ages of all the people who died in a relevant period, add them together and divide by the number of people, and you have life expectancy .
Make sure all our needs will be covered even in case we live longer than expected base on the life expectancy tables and own health factors. Most retirement planners are now using an age of 90 years of more.