Retirement planning is a term that refers to the allocation of financial resources towards retirement. In most what is investment planning this simply means setting aside money or other similar assets for the purposes of collecting a living income once you’re past working age. Financial independence is the goal of retirement planning.
Readiness to Retire The process of putting together plans to retire involves two basic parts. The first part is assessing your readiness to retire given the lifestyle goals you have and the age at which you hope to retire. The second is to come up with possible actions and decisions to improve your readiness and to get closer to your goals. Every action we take as investors through the years are in relation to this recursive process. Retirement planning is not something that can be done in a day, a week, or even a month. It is not an event but rather a recursive and cyclical process. The best plans are the ones that provide enough flexibility to allow us to make changes as the need for doing so becomes evident.
To achieve this kind of flexibility and to come out with the best series of investments to help you achieve your goals, it is good to work with a retirement planner to make the process simpler and to help expose you to ideas and investments you might not be aware of. Retirement planning can be a difficult and sometimes mysterious process, but professional planning can make the process a whole lot simpler. Investors who wish to reach their retirement goals need to start investing as early as they possibly can. Getting into the market early gives your investments more time to perform and to earn income for you. Establishing a consistent pattern early on also helps build up the portfolio so that it can better withstand downturns in the market.