Savvy investors understand the importance of developing a life-long financial strategy, and how critical it is in planning for the future to start investing in the early years; this, to the lifestyle desired throughout those Golden Years of retirement.
It’s not unusual for working families and retirees to be faced with unplanned expenses such as taking care of aging parents, or a loved one.
Investors are always asking the question, “Will I be ready for retirement.” As such a recent study by the TransAmerican Center for Retirement Studies takes on this question in its annual report on retirement readiness.
Now in its fifteenth year, the study delves into the “readiness” of Generation Xers, those born in between the ‘60’s and 1980’s. But the content and lessons learned are applicable to all investors today.
Understanding the “Big Picture”
Developing a financial plan is not just about the portfolio, but includes all of the investor’s assets and liabilities. Do you plan to have a mortgage when your retire? Will that rental property be paid off in order to provide another income stream?
Getting financial assistance is key.
The report encourages investors to develop a basic understanding of sound investing principles. More importantly, they should also seek assistance from a financial advisor.
In fact, 65 percent of the respondents in the survey indicated they don’t “know as much as they should” about the ins-and-outs of investing.
In addition, just about half of those surveyed welcomed to understand investment topics, while 10 percent noted they were simply “just not interested.”
Whether you own a business or are an individual investor, “retirement readiness” is an important consideration throughout the working years.
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