Most Australians today are worrying about saving a few extra dollars for their retirement. You need to have a strategy on how much to save and how to save. This strategy would help you to start with the plan and continue with it, effectively.
You need to guess how much you would need for your retirement. This includes the life expectancy calculation, the tax inclusion, inflation inclusion and all the other major spending like mortgages. This would help you to get a figure that you must save.
If you are starting to save for the retirement from the age of 30, you would be required to be put a lot less amount of money, every year and also it might help you to retire, a little early. Make savings, a habit and always put aside 10% of your income. If you are starting from 40, it is better to put 20% of the income for retirement. As you grow older, you might need to put down a lot more money.
Diversify your fund
Do not put all your retirement funds into one investment. It is important to know that the stock market is a good place to invest. However, investing in the stock market needs a lot of experience. You need to start at a very young age and try the investment with a small amount of money. You cannot start to invest with your retirement money.
You need to separate the money and put it into different vehicles so that you would be able to get a decent standard monthly payment, option to increase the fund and also have a backup fund. The most common vehicles are;
Insure it against risk
If you happened to have a personal risk, then there should be a way to protect your assets for your family. The risks include disability, untimely death and also long term care needs.
The other mistakes like, too much of the tax deferral, over diversification, relying on the social security, anticipating low tax and low cost and also planning to work during the retirement. Do not take into consideration anything that has no high probability of happening. Talk to your financial advisor and get your retirement fund managed and saved for the future. The sooner you start, the better and easier you could save.