The economic crisis has caused many people to reconsider their retirement strategy and look deeper at their situation. Can exchange traded funds (ETFs) be part of the new answer many investors are looking for?
The financial climate of today has many people looking for different answers to their retirement questions. A deeper and more detailed outlook is being taken by both young and old investors. Here are a few pointers to consider about your retirement position, from Huliq news:
- Look at your strategy, whether it’s with a professional or on your own: The sooner you do this, the better off you will be. Having a strategy can help guide you and help you make the adjustments needed at each phase of your life to make sure you are on the right track to obtain your goal. Ideas such as lifestyle and budget must be addressed.
- Sources of income/savings: Identify the sources of income and savings that will be accessible once you are retired. Social Security is a big question lately – will it even exist? Do not rely on programs such as these. Pensions are another thing to consider. Many employers no longer offer them.
- The 401(k) option: Many employers have moved to this platform instead, as it is more efficient than a pension – for them. Investigate your employer’s plan and keep contributions on the higher end, especially if they are matching you. Consider ETFs in a 401(k) plan also. They are not readily available in these plans yet, but are on the brink of breaking into this arena.
- Eliminate debt and keep working: Both of these are important ideas to consider before you retire. The more you can save, the less you will have to rely on from other sources for income. Each year you delay starting to receive your Social Security checks, you will receive 8% more when you do start receiving them.
For more stories about retirement, visit our retirement category.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.