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What is retirement
planning? Retirement planning is the development of a plan on when
you can and will retire from the workforce with enough passive
income coming in to cover more than your monthly personal expenses.
Retirement planning is part of
your long term goals. Most people start thinking about retiring when
they are around thirty-five years old. This isn't too late to start
thinking about it, but it does make it a little more difficult to
retire at a younger, more fruitful age.
Before you decide where you
want to be financially, you must first find out where you are
financially. You must create a financial statement so you know where
you are right now financially. This will help you later on with your
budget planning as well, but it is essential to know where you are
starting and how you are going to get there when you want to get
there.
Here's a little excerpt from the
Employee Benefit Research Institute®
that shows that Americans have not learned how to save and invest
for retirement:
Retirement worries growing—Americans’
confidence in their ability to afford a comfortable retirement has
dropped to its lowest level in seven years, reflecting worries about
health costs, the economy, and home values, according to the 18 th
annual Retirement Confidence
Survey®
(RCS).
Most of this worry comes from
the lack of financial and retirement education they have had in
their lives.
Have you really thought about
retirement yet? The question what is retirement planning is
discussed more in detail on the next page.
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