John Labunski How to design the best retirement plan

 As little as we like to grow old, time takes its toll and does not pass in vain. Sooner or later, the time will come for all of us to retire. Fortunately, we still have time to design the best retirement plan for ourselves. Would you like to know how?

 One of the most common mistakes made by many Spaniards is that they overestimate what they will be able to do in the future with their public pension. Nothing and no one can guarantee us that public pensions as we know them today will continue to exist in the future.

 What if the system collapses and pensions are not enough to maintain our quality of life? Faced with an uncertain future and beyond our control, the best thing we can do is plan our retirement . In this article we will show you how to achieve it.

 The 5 stages of the best retirement plan

 A good retirement plan should have these five stages:

 1. Define your retirement goals

 Not everyone approaches retirement the same way. There are those who decide to retire to the town house to live in peace, others prefer to move to the beach, there are those who decide to enjoy retirement traveling the world... There are plans for all tastes.

 For this reason, the first step in designing a good retirement plan is to define the lifestyle that we want to have when we retire from the world of work. Once we have this clear, we can start doing numbers.

 2. Set a budget to achieve them

 With a well-defined goal in mind, we must get out the calculator and make forecasts. Actually, this stage boils down to honestly answering a simple question: when we retire, how much money will we need to maintain the lifestyle we dream of?

 3. Reduce your exposure to debt

 Especially when you are young, you should make an extra effort to reduce your exposure to debt. Keep in mind that the less load you carry in your backpack, the easier it will be for you to reach your financial goals after retirement.

 In an ideal scenario, you should reach retirement with no debt of any kind: no credit cards, no personal loans, no mortgages.

 4. Start saving as soon as possible

 Without savings there is no paradise. As you can imagine, this is the most important point and at the same time the most complicated of all. If you want to save a percentage of your salary every month, you must learn to live below your means, with a simple and frugal lifestyle.

 Believe us, there are no shortcuts or magic formulas beyond effort and sacrifice. The sooner you start saving, the easier it will be for you to accumulate the capital you need to maintain the lifestyle you want in the future.

 5. Invest

 Saving, without more, is not going to be enough, since inflation will make your money worth less and less. You need to invest your savings so that compound interest becomes your ally and helps you achieve your goals.

 Fortunately, today there is a huge range of financial products to choose from. In our opinion, you should focus only on those that have low commissions, are profitable and can be adapted to your current financial circumstances.

 This wide range, index investment funds, ETFs and pension plans seem to us to be the most interesting investment vehicles to reach retirement with guarantees.

 At John Labunski we can design the best retirement plan adapted to your goals and your financial situation. How? Very easy. It all starts with taking a small step: answering a short test . The rest, we take care of ourselves.