Steps to your Financial Health

A major part of your retirement well being is the management of your financial assets. It is just about as critical to your future as your physical health. Living on a fixed income means knowing at all times:

- your income

- what you spend, as dictated by your Lifestyle

- what investments you have

- and what supplemental income is available

To maintain a balance in retirement life, a retiree must not be so obsessed with finances that he or she fails to enjoy the rewards of senior life.

There are several Calculators available here to assist you in budgeting, managing your investment portfolio, and knowing where you are financially. If you use these calculators and the accompanying spreadsheets, you can provide for a higher level of financial security in your later years.

“Don’t ask the barber if you need a haircut!”

Getting financial advice from someone who gets paid for selling you stocks, bonds or mutual funds is just like asking the barber if you need a haircut! Make sure that you know how to look at your finances objectively and, if you want some advice, know where to find objective recommendations from qualified experts that do not earn commissions by selling you something. There are objective financial planners out there and some are even free of cost. RetireeWorld will show you how to find them.

I paid to help put my broker’s kids through college and to provide my banker with a nice boat before learning the secrets of a self managed and safe retirement portfolio. Now I have almost all of the fees and expenses working for me rather than for someone who sold me a stock or CD.

Our Investment Comparisons of Stock Mutual Funds and Index funds should be very enlightening. See how the various type of investments have fared over the past 50 or so years. Of course, everyone has to be responsible for making their own decisions in this world and Retiree World should never be considered a financial advisor; we are just pointing out the historical results of various type of investments. And, of course, historical results are not good predictors of future returns.

Very few Mutual Funds have outperformed the overall stock market in the past 40 to 50 years! To basically track the performance of the market, you could use Index Funds that will provide you with the standard return of a certain market segment without the volatility that stocks in individual companies will produce.

Regardless of the particular investment vehicle you use, it is critical that you consider your Asset Allocation strategy so that your investments are diversified among the various market segments.

Your personal tolerance for financial market Risk is a key factor in managing your retirement investments. If you will take the time to research the issue of Asset Allocation and get to really understand your tolerance for Risk, you will be able to move forward in confidence that you are getting the most from your nest egg investments while being able to sleep at night.

Many folks set up Trusts to provide for passage of certain funds to others, or to provide a vehicle for Charitable contributions while maintaining investment income. Others prefer to buy an Annuity to provide a guaranteed cashflow throughout their retirement.

Another 'investment' vehicle gaining in popularity is the Reverse Mortgage . These are in vogue with those who have considerable equity in their home and wish to convert that asset into a monthly income stream. There are lots of tools out there and more an more are being created all the time. Take your time, don't jump into anything, and remember - you are in the driver's seat.

There are many ways to supplement the income that you get from Social Security, pensions and investments. For an in-depth discussion of how to earn extra cash in retirement, go to our sister website,

Retire To Easy Street . com

Also, be sure to sign up for our email newsletter to keep you up to date on issues regarding your retirement. For a limited time, you will get a free copy of the e-book "Preparing for Disasters" when you sign up at our Special Programs corner.

Note: The author, publisher and webmaster of Retireeworld.com never gives legal, accounting, medical or any other type of advice. The reader must always seek those services from competent professionals that can review their own particular circumstances. We particularly disclaim any liability, loss, or risk taken by individuals who directly or indirectly act on the information contained herein. All readers must accept full responsibility for their use of this material.