How to Make sure that your retirement years are right on the money

Now that you're retiring you'll probably be trading in the security of a regular paycheck for the luxury of something you probably haven't had much of during your working life–free time. In many ways time will be your most important new asset. But unless you have enough of your second most important asset–money–you won't be able to take advantage of the exciting possibilities that a well–planned out retirement enables you to enjoy. Want to make sure you’re properly prepared so you don't end up in the unfortunate position of not having enough income or "outliving your money"? Then just remember this: it's never to early to start planning for retirement, and if you are already in retirement, there are most certainly ways to adjust a portfolio in order to maximize income while reducing your risk. Quality retirement investment advice can and does make the difference between years of new horizons and years of struggle, scrimping and sacrifice. The choice is up to you.

By far, the most important step in building a secure future for yourself and your family is to locate a financial planner who specializes in turning retirement dreams into retirement realities. A good financial adviser will help you come up with the right answers for your particular goals and post-employment situation. More importantly, however, a good financial adviser will help you identify the right questions to ask yourself. Here are some of them:

Competent retirement planning experts will tell you that you face five primary challenges in retirement. First and foremost, is the challenge of maintaining your standard of living. Compared to previous generations, you’re likely to live longer. That means your money will have to stretch further into the future. The proper allocation of equity-oriented investments, bonds and funds goes a long way to giving you the best chance to preserve and live the lifestyle you’re accustomed to—and the one you’ve always dreamed about long after you’ve stopped working.

Challenge number two is likely to be the rising cost of healthcare. Healthcare costs have increased considerably and are projected to continue to rise faster for retirees than for non–retirees. In many cases, annual medical spending for people over the age of 65 has increased over 20% a year—far more than for younger Americans. Medicare and Medicaid alone won't cut it. It's imperative, analysts say, to have a plan that includes contingencies for medical emergencies and even the possibility of long-term care.

The next challenge your retirement investment advisor should prepare you for is market volatility. The stock market is booming right now. As we all know, it hasn't always been the case—and you certainly can't predict the future. Given that you'll be depending on your investments for income, you'll need to strongly consider options that are not subject to market fluctuations.

Finally, you'll need to protect your standard of living from the erosion of inflation. Over the last fifty years, for example, the cost of dining out has edged up over 4% a year. A twenty-five year retirement means that later on, you might very well end up needing twice the amount of money to dine out than you need today.

Whatever your retirement dreams and objectives are, the best thing you can do is start planning now. It’s never too early or too late to put the financial pieces together to enjoy a prudent, prosperous and enjoyable retirement. The key is getting expert retirement investment advice. For overall retirement investing advice contact Alan Haft now.