subject: Changing How You Save And Invest For Retirement [print this page] Planning your retirement is usually an effort that requires the aid of an established financial expert. However, you may choose to go the "do-it-yourself" path when it comes to other aspects of your financial strategy, for example. Before you do this, you might want to reconsider, as many supposedly tried-and-tested investment strategies are no longer applicable today.
When it comes to stock market investments, focus on dividend-paying stocks. There's a wide range of stock choices for even the average investor, as more businesses pay dividends and many of the high-end players in the stock index are increasing shareholder payouts. Some may argue that dividends don't ensure winning stocks, although dividends can give you a stable source of income when stock prices tend to fluctuate due to many external factors. In the same vein, you could consider bonds as another potential income stream with which you can receive regular and predictable income.
Personalizing your emergency funds is also key to surviving during retirement. Conventional advice says that you should have savings that can cover a quarter to half a year's worth of expenses, although what you actually need to save up banks on how predictable your income is (or how stable your job is). If your job isn't stable, which could result in a decrease in or lowering of income, you should save up proportionally more. If you think you're at risk of losing your regular job or have erratic income, aim towards savings that will keep you out of the red for the minimum of one year.
Hold out for better benefits when it comes to your retirement accounts. Once you reach normal retirement age, you'll get bigger payouts compared to withdrawing from your plan or account early on. When you reach the normal age of retirement, you'll have the ability to continue working and getting benefits without having to avoid the earnings cap which can cut a dollar's worth of benefits for every two dollars you make beyond the limit.
The recession may be over, but its effects are still felt across the nation and across all ages. With retirement being an especially vulnerable time for many seniors, both financially and emotionally, future retirees should consider personalized emergency funds, holding out on retirement account benefits, and buying dividend-paying stocks to help strengthen their nest eggs and make the most out of their money.
by: Carina Smith
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