We’ve talked about retirement plenty of times in this website, and have even offered plenty of tips up until today. Now, we will address a very special question: “Is there are a quick, ‘one-size-fits-all’ solution to preparing for your retirement?”
Well, the quick answer would be is: “No.”
Retirement is very complicated process to prepare for, and each process is personal and fits only the person that is coming up with the plan. True, one can share their tips and tricks as to how they prepared for their retirement. Professionals can offer advice as to how people can pave the road to retirement early.
However, not all systems are designed to work for each and every person who’s looking to get ready for retirement. Here are some reasons why.
Because retirement preparation is heavy on making investments, one type of investment could for one retiree but will be disaster for the other. This is because each type of investment carries with it its own unique set of risks, and people react differently to risks. There are people who have the stomach for higher risks, while others are more content with dealing with low-yield, low-risk investments as it doesn’t give them lots of heart attacks and nervous breakdowns.
This is the clincher here. Everyone has a unique financial situation, which is driven by different factors that may or may not be wholly present in someone else’s predicament. This alone shoots the concept of “one-size-fit-all” right in its foot. You cannot offer one solution that can be applied by all retirees, because each one has different ways to manage his or her money.
Finally, there are just so many ways that can help people prepare for their retirement. You don’t just tell a person that there is only one way to beef up their preparedness for the day that they leave their corporate life and their regular stipends. You tell them that there are various ways to prepare, and that they can choose from this, or they can pick that if they’re not comfortable with that one is offering him or her.
The various options available for retirement preparation actually offers opportunities. What are these opportunities? Well, these are opportunities that allow for customization, so one can make sure that the preparation plans they receive from their advisors are definitely tailored for their specific capabilities, risk tolerance and plans for their retirement.
So, the next time you ask somebody if there’s a general approach to preparing for retirement, expect that people will give you a plethora of suggestions that are not all applicable to you. What you should do, however, is to find a mix or a balance between all of the tips and advice that are given to you.
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