Home / Retirement Resource Center / Five Straightforward Steps to Financial Freedom in Your Retirement

Retirement planning takes exactly that — planning. But it doesn’t have to be complicated. Annuity FYI firmly believes that a successful financial plan must not require tremendous investment management skills on the part of the planner. Annuity FYI recommends finding a Certified Public Accountant and a qualified financial planner to confer with from time-to-time, and following these four (that’s right, just four!) steps:

  1. Fully fund, every year, your retirement fund, be it a 401(k), 403(b), IRA, or Keogh. In other words, contribute the maximum amount annually — it’s a pre-tax contribution and compounds tax-free until withdrawal. Take full advantage of any matching funds from your employer (it’s free money). Also, fully fund a Roth IRA each year if you qualify. It’s tax-free versus tax-deferre and will be great down-the-road to help supplement your income.
  2. Set up with your bank to have deducted from every paycheck 15% of your net income from that paycheck, and have it deposited in a separate investment account for long-term growth. Sounds like a lot to have deducted from your paycheck? Try it — you’ll hardly notice it. It’s called forced savings, and it’s the best way to guarantee that you’ll be saving money every month (without even trying!).
  3. Invest your forced savings every month in properly selected mutual funds or other investment vehicles suited to your point in life and risk profile. Unsure of how to allocate your investment dollars? A qualified financial planner or Annuity FYI Expert can help you determine the appropriate mix of investment vehicles for your specific situation.
  4. Purchase the appropriate amount and type of life insurance to protect yourself and your dependents in the event of an unfortunate accident. Unsure of how to determine the appropriate amount and type of life insurance? It’s easy. Generally, most people need only to select from renewable or convertible term insurance. You can contact a qualified financial planner, or Ask and Annuity FYI Expert to be sure. And in general, you should have enough life insurance to pay off your debts, cover future lump sum expenses such as funeral expenses and dependent college education, and to provide sufficient cash flow to support your dependents (accounting for inflation). Use a conservative 8% rate of return when determining cash flows from a life insurance policy.
  5. For a free, no obligation consultation contact Annuity FYI 1-866-223-2121 to speak with a highly qualified financial consultant.

By fully funding your retirement account, contributing $3,000 to a Roth IRA (if you qualify, and $3,500 for individuals age 50 and over) and in addition creating a forced savings plan of 15% of your net income invested in the appropriate investment vehicles, you will be positioned to accumulate significant wealth that compounds over the long term, and well on your way to a financially independent retirement.

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