Denver Retirement Planning

Denver retirement planning involves assessing your net worth. Regardless of whether you're planning on retiring in Denver in the next few years or in the next few decades, it's important to assess your net worth. So, you need to sit down and evaluate your current assets, as well as your debts. A Denver, CO financial advisor can help you with this process, if you want, or you can start doing your own calculations.

One of your key Denver retirement planning goals will be to create a balanced portfolio of investments. You'll have a number of decision to make your as you're considering Colorado retirement planning. For example, you want to decide whether you should invest in stocks, mutual funds or both. A Denver retirement planning specialist can help you set up a balanced retirement portfolio, but it also helps if you understand the basics of investing.

Calculating Net Worth

Sometimes, people make the unfortunate mistake of jumping into retirement before calculating their net worth. Don't make that mistake. No matter when you plan to retire, knowing where you stand financially it's absolutely essential. So, if you're ready to start this process on your own, get out your pen and paper (or open up the appropriate program on your computer) and start taking notes.

If you've already begun your Denver retirement planning, you may have IRAs, 401(k)s, or other retirement accounts. Go ahead and start by writing down the money you have in those accounts. Also, unless you have a Roth IRA, you probably have to pay taxes on income in those accounts, and you should include a significant tax margin in your calculations.

Also, take note of what you have in your Denver, CO bank account, and any other investments you may have. If you have any stocks, bonds or mutual funds, take note of those as well. To begin your Denver retirement planning, it's important to know how much authority saved.

Next, consider your debts. If you have any credit card debt, write that down. You also might consider car loans, or any outstanding medical bills. So, if you're still paying a mortgage on your Denver, Colorado home, write that down. Hopefully, your debts won't outweigh your assets, but if you're young, they may.

If you can pay off all your debts before you begin your Denver retirement, you'll certainly be much more relaxed. In fact, planning to pay off your debt before you retire is a laudable goal. If you can pay off the mortgage on your Colorado home, you'll be much more relaxed during your golden years. It will also make your financial planning easier, because you won't have to consider those payments.

Once you've assessed your net worth, you may want to consider meeting with a Denver, Colorado financial planning advisor. A financial advisor can help you set up the appropriate retirement accounts, and create an appropriate savings plan for you. You can absolutely do this on your own, but seeking professional advice may make planning your finances much easier.

Mutual Funds or Stocks?

A mutual fund is basically a balanced portfolio of its own. Your money, along with that of other investors, is pooled, and a mutual fund manager buys and sells stocks, securities and bonds with those funds. A stock, on the other hand, it's basically like buying a small piece of the company.

As you probably know, one of your key Denver retirement planning goals is to diversify your portfolio. So, mutual funds, which are diversified, are a good idea. As an individual investor, you may know that researching stocks takes a lot of time and patience. You don't have the same experience as a mutual fund manager, and therefore, it will be a lot harder for you to choose what to purchase.

However, if you're starting your Denver retirement planning early, remember that choosing your own stocks will probably be a great investment in the long run, as stocks always have in the long run. If you invest in a mutual fund, you have to pay higher management fees, and that's essentially a cut in your income. That being said, mutual funds may be considered to be more reliable in the short-term.

It's also very easy to invest in a mutual fund. You can buy into it with a small amount of money, and continue adding to it pretty easily. So, if you're looking for investments to guide your Denver retirement planning, a mutual fund might be a good start.

Of course, your best option is probably to buy stocks and mutual funds. You can consult with a Denver retirement planning specialist, if you wish, to make sure your portfolio is well-balanced. When you're planning finances for your retirement, it's generally a good idea to consult professional at some point.