Are you prepared to retire?

Retirement used to conjure up images of lazy days spent in a rocking chair. Today’s retirement is very different. Will you open a business of your own? Return to school for that degree you never had the chance to complete? What does retirement mean to you? Regardless of your vision, you’ll need to design a financial plan suited to it. A professional financial consultant can help you monitor your plan and make changes when necessary. Among the factors you’ll need to consider:

• Time. The number of years until you retire will influence the types of investments you should include in your portfolio. If retirement is a short-term goal, investments that provide liquidity and help preserve your principal may be most suitable. On the other hand, if retirement is many years away, you may consider more aggressive investments in your portfolio.
• Inflation. While lower-risk fixed-income and money market investments may play an important role in your investment portfolio, if used alone they may leave you susceptible to the erosive effects of inflation. To help your portfolio keep pace with inflation, you may need to maintain some growth-oriented investments. Over the long-term, stocks have provided returns superior to other asset classes. But also keep in mind that stocks generally involve greater short-term volatility and past performance is no guarantee of future results.
• Taxes. Even after you retire, taxes will remain an important factor in your overall financial plan. If you return to work or open a business, for example, your tax bracket could change. If you move from one state to another, state or local taxes could affect your bottom line. Tax-advantaged investments, such as annuities and tax-free mutual funds, may be effective tools for meeting your retirement goals. Tax deferral offered by workplace plans — such as 401(k) and 403(b) plans — and IRAs may also help your retirement savings grow.

Prepare today for the retirement of tomorrow. To ensure your retirement lives up to your expectations, develop your plan as early as possible and consider consulting with a professional. With proper planning, you may be able to make your retirement whatever you want it to be.