The thought of retirement often triggers panic attack in many due to income related worries. The regular source of income stops coming when a person retires from the job. Post-retirement, if there are no alternate sources of income or one has not done retirement investment in advance, it can result in financial hardship. It is not only important to enjoy the present, but also plan for the future as the time never remains the same. A person joining a job must remember that, he/she is going to retire one day and to enjoy the same comfortable life ahead -- the retirement investment plan must be made in advance.
One cannot absolutely figure out how much money one requires after retirement due to inflation, future health care bills, and more. But, one can approximately determine based on the life style one wants to lead, possible health care needs, possible emergency needs, and more. There are retirement investment calculators available that can assist in finding out how much money is required post-retirement.
In addition to pension plans, one can invest in stocks, mutual funds, and exchange traded fund (ETF). The stocks provide a partial ownership share in a company, and investing in good stocks can help in beating inflation. However, there are risks involved and one should seek professional advice before investing. Mutual funds are a much safer bet compared to stocks as professional fund managers invest in a number of companies at a time. The invested fund can be invested in bonds, stocks, or both. ETF tracks an index, a commodity or a basket of assets like an index fund. However, it trades continually through the day like a stock, and is considered attractive as an investment because of low costs, tax efficiency, and stock like features.
It is important to find out about all the retirement investment options available so that one can invest in the right ones.
