September 29th 2014 at 2:20pm Published by firstdownadmin

Getting solid financial footing requires you to focus on the most important elements of your money: saving and investing.

Retirees need to know how to generate enough income to maintain their lifestyles without exposing their assets to too much risk. Social Security is obviously a key source of steady cash, and some retirees also have traditional defined-benefit pensions, an increasingly rare type of plan that pays out like clockwork.

Its important to know how to calculate the amount you need to retire.  Most financial advisors will say that you need to multiply your cost of living by 25.  This means that if your yearly expenses are $50,000/year you will need 1.25 Million to retire.  Saving 10% of your salary is the start but you should consider also controlling your expenses, choosing well where you invest and even reducing the risk associated with the things you own like your home.

Here are seven steps you can take to ensure a secure retirement:

  1. Maximize retirement savings.
  2. Reduce payment obligations.
  3. Establish retirement income sources.
  4. Regularly rebalance your investment portfolio.
  5. Reduce asset risk.
  6. Downsize your home.
  7. Take Social Security wisely.

So start early, or take action as soon as possible, no matter your age you should take keep in mind that retirement is important and should be part of your life planning.