The most important long-term financial goal for almost everyone is to save for retirement. For most people, this is a priority over saving for anything else.
Investing for retirement doesn’t have to be complicated. There are certain steps things that need to be identified before you plan for your retirement as follows:
- How much income you are likely to receive from pension and other investments
- Estimate your living expenses based on your desired lifestyle
- Ensure that all major loans are paid off by your retirement
- For retirement planning, a preferred investment avenue would be equities, since it is a long-term goal. Retirement planning should begin with capital appreciation and gradually move to capital stability as the investor reaches retirement age.