A senior retirement specialist in Miami, Florida, Ana Fajardo works with businesses, school systems, and individuals to provide expert advice on financial planning and investment. Drawing upon an entrepreneurial consulting career that spans well over two decades, she helps ValuTeachers clients find the peace of mind that comes with a sound retirement plan.
While it isn’t necessarily easy to achieve financial security in retirement, Ana Fajardo has advised various people and organizations who have made that security a reality. Here are just a few ways to set yourself up for the retirement years that you both need and deserve.
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1. Take Advantage of the Opportunities to Invest
Although it is best to begin saving for retirement as early as possible, even a short investment period can go a long way when it comes to providing for your financial future. You have to remember that the approach to retirement investment that you take in your 30s should be pretty different from the approach you should take in your 60s.
2. Approach Retirement Plan Deposits as a Routine Bill
While they may not pay for immediate needs like your mortgage, rent, or car loan bills, your routine retirement savings deposits are no less essential to your future well-being. For this reason, it is wise to view these deposits as one of your many necessary recurring expenses. You may even be able to debit retirement funds from your regular paychecks automatically.
3. Use a Tax-Deferred Account
No matter how you contribute to your retirement fund, it is wise to place your monetary assets in a tax-deferred account. If you choose to deduct deposits from your paycheck, a tax-deferred account can significantly reduce your regular income tax burden. Furthermore, a tax-deferred retirement account will discourage you from spending the assets it contains because you will likely face tax penalties if you do so.
4. Diversify Your Portfolio
It may be an old cliché, but it is undoubtedly true when investing for retirement: Don’t put all your eggs in one basket. If you concentrate all your retirement savings on a single type of investment, you run the risk of losing your assets in their entirety, but you are statistically more likely to limit your final ROI (return on investment).
5. Plan According to Your Expenses
Balance your income against expenditures in order to determine your optimal routine retirement deposit amount. As your income, lifestyle, and fiscal responsibilities change, your retirement plan should change along with them. You should also do your best to consider all the expenses you may encounter after you retire. If you fail to anticipate these expenses properly, you will be unable to make reliable projections and plan accordingly.
6. Work with a Qualified Financial Planner
Few people without a specialized background in investment finance will be able to make the most out of their retirement savings and ensure that they remain financially secure for the duration of their lives. It is essential to find a certified and experienced professional financial planner who will meet your specific wants and needs as a client.