All you need to put into consideration when preparing for retirement.

retirement planning

According to a recent report from businessinsider it says

• The amount you will need to retire will be reduce if you have  additional steams of income in retirement. Especially if a portion of that income will be taxed advantage.
• The 4% rule  is a popular way for investors to calculate how much they need to save to reach their retirement goal.
• Many experts recommend that working adults plan to have 70% to 80% of their pre-retirement to use in retirement.

But I've got a good news for you to look at this: retirement isn't about age. Its about financial number once you know exactly how much you'll need to live out your dream, you can work to accomplish that goal and retire once you have need it.

If you are wondering how much you need to retire, I like the way you are thing. You are a step ahead of the game because sadly, most people don't have a strategy for saving for retirement. They just live in a certain age-may be 65-and try to save as much as they can until then.

If you're going to retire with plenty of savings and live the life you've dream about, you need to create a plan now.

And for you to make any retirement planing there are three things to consider.

1. Inflation.

Back in 1965 if you have $140.00 you would have been a millionaire by today's standard. From 1965 to 2011 the average annual inflation rate was 4.39%.

Let's face it today. The purchasing power of $1 thirsty years ago is different from that of today. I remember as a kid, my sister and I could go into a store with $1 and get two chocolate bag and a bar of chips and a handful of double bubble.

Let's make it straight: inflation is the gradual rise of the cost of living overtime it hovers around 3 to four percent every year. Alone, this might not be a huge deal after a couple of years. But if you are planning to live 20 and 30 years in retirement, you need to take inflation into account! If you need over $7000 by the year 2050 to have the same purchasing power!

Inflation should be one of the main reason you need to invest your money. You can't just stuff it on the cookie jar and hope for the best. You need to grow by.

Choosing investment that rise with inflation.

Some investment and insurance products are more likely to keep pace with inflation than others. The trade-off may be less income now, but more income later. Choice below are classified into, save, medium, and aggressive medium of risk.

Save investment.

• Treasury inflation protected securities.
• Inflation indexed immediate annuities.

Medium risk investment

• Inflation protected board funds.
• Floating rate funds.

Aggressive investment

•  Dividend paying index fund.
• Real estates funds.

What about gold? Despite the common belief that's holding gold. It's a good way of holding against inflation, in the past gold had been a better crisis than inflation hedge. That means during time of slow steady inflation goal as not kept up, but it soars during time of crisis.