In fact, a
recent survey released by TD Ameritrade Holding Corporation
found that nearly one-third (31 percent) of pre-retirees are
concerned they may not achieve financial success.
When it comes to assessing your readiness for retirement, tax
time can be a great time to do so. What many don't realize is
that the paperwork needed for taxes is the same paperwork needed
to plan for retirement. Since you're already gathering the
information and will potentially have extra money in the bank
from your refund, it's a logical time to check in and make
necessary adjustments to your retirement plan or contributions.
"Starting early with planning and investing for retirement is
key, but it's important to remember that you don't have to
develop a comprehensive plan all at once," says Lule Demmissie,
managing director, investment products and retirement, TD
Ameritrade, Inc., a brokerage subsidiary of TD Ameritrade
Holding Corporation. "Breaking it up into pieces and getting
your plan started during tax time makes good sense. You can
always build upon it in phases."
So where do you begin? If you haven't yet given much thought to
retirement, assessing your current financial situation will help
you determine your next move. TD Ameritrade's WealthRuler is an
innovative, online retirement calculator that helps investors
review their projected retirement savings and expenses.
WealthRuler is free and available to everyone. If you want to
speak to someone in person, you can also visit a TD Ameritrade
branch for a quick retirement checkup discussion.
After you've determined your level of preparedness for
retirement, it may be time to act. Consider these four key areas
when planning for retirement:
* Lifestyle. Try to envision where you'll want to live when you
are retired and the associated travel costs, taxes and proximity
to key items of importance such as health care services. Try to
picture what types of activities you will enjoy in retirement
and how much they will cost, in addition to the money necessary
to maintain your current lifestyle.
* Budget. Consider any expenses that will cease to exist upon
retirement. Then, factor in costs that you expect to increase,
such as health care expenses and travel. See how your retirement
budget compares to your current budget and plan accordingly.
* Resources. Conducting an annual inventory on the different
types of income you'll receive in retirement can give you a
clearer picture of what your retirement outlook will be.