“Retirement” can mean many things to many people. It can be a fun and relaxing phase of your life that you look forward to or it can strike dread in you, depending on how you have planned for it. Having the right retirement plan in place can make all the difference. Choosing a retirement plan might sound simple but it can be deceptively devious. There are so many factors that come into play and it is important to have the right advice to ensure a happy retirement. It pays, literally pays, to consult the right professionals to put your plan in place. Here is a simple example to put this in perspective – you enjoy tax deductions in the present when you are saving for retirement, but what about the taxes that will hit you when you actually retire and start drawing from those savings?

The first thing you should consider is the time horizon. How long do you have until you retire? This should help you decide on how risky your investments can be. Also, the timeline is the basis of your planning for your retirement goals. How long does your money have to work for you and earn the returns you need? This can decide how diverse your investments can be, what kind of plans you can realistically opt for, what sort of investments you can make, and so on. Another important consideration is taking on a wise plan that will help minimize the taxes you will have to pay when you start drawing on the funds. It is also important to bear in mind that retirement plans can evolve through the years. Portfolios can be rebalanced over longer periods (if you have the luxury of time), and estate plans can be updated over time as your requirements change. It is not at all necessary that you choose one plan and it remains static for years…