Aim for a retirement with no regrets

Try asking a few people over 60 what they regret most about how they prepared for re­ti­rement. You’ll probably hear that they wish they’d gone about their financial planning in a different way. It’s worth studying their answers so you can avoid major discomfort later on. Here are the most common regrets:

“I should have started saving when I was younger.”
It’s important to start saving for retirement even in the early stages of your career. You probably won’t work for the same employer for an extended period of time, the way your parents did, and a company or government pension can easily disappear from under your feet if you lose your job before you qualify. Even if you are self-employed, open a 401K and be vigilant about it.

“I thought I didn’t have enough income to contribute to a savings plan.”
Whether you’re highly disciplined or a free spirit whose money burns holes in your pockets, the cost of living may always seem oppressive. But saving money doesn’t have to gut your paycheck. Set up an IRA with your bank, life in­su­rance company, mutual fund, or stockbroker. Make contributions that match your current capabilities and up the contributions whenever you can.

“I didn’t diversify enough.”
Diversified retirement planning is crucial; don’t be tempted to put the bulk of your savings at the mercy of the marketplace. If you count on just one source of retirement in­come, such as a pension and stocks, you and your loved ones may be left short if the market plum­mets. Prac­tice com­prehensive fi­nancial planning with IRAs, a 401K, life insurance, and mu­tual funds.

PC : Start planning early.