As the economic landscape has changed over the past 50 years, planning for retirement has become one of the single most important financial goals of Americans today. Gone are the days when an employee could depend on receiving a pension after devoting a career to one company. Americans today are faced with the responsibility to finance their own retirement. Most Americans are rising to the challenge.
Retirement planning requires sophisticated calculations that are designed to help you become financially prepared for your retirement years. Your retirement plan should take into consideration how much money you will need to live comfortable during retirement. Inflation will have a significant impact on the value of your money at retirement this is referred to as purchasing power. Other considerations include taxes, investment returns, and future sources of income including social security.
Once a retirement plan has been developed, it must be monitored closely so that adjustments can be made that will keep your plan on track.