It’s never a bad time to start planning for retirement, even if you’re already there! Financial planning can be intimidating but it doesn’t have to be. By making wise decisions with the right advisors, you’ll be well on your way to enjoying your post-work life.
Review your retirement goals
At every stage of retirement, it’s essential to look back on your past financial goals and adjust your plans for the future. Before even meeting with a financial advisor, take stock of your finances (as well as your spouse’s) to see where you are and where you’d like to be. You might be surprised by how your needs and wants crossover.
Meet with a professional advisor
After doing your research and assessments, it’s time to meet with a professional. An investment planner knows the best ways to keep your retirement and savings last as long as possible. Not only will they have impartial eyes for your fiscal health, but they will have years of experience dealing with the same issues that will likely feel new to you. Referrals are the best way to seek a trustworthy financial advisor and don’t hesitate to meet multiple individuals to find the best match.
Establish a spending plan
While there will always be unexpected expenses, establishing a budget with your retirement will help take the guesswork out of financial planning. Most people don’t take this step and end with unanticipated costs and/or debts. A good rule is only to take out up to 4% each year. However, this percentage doesn’t work for everyone, so speaking to your accountant or financial advisor can help you navigate an individualized path.
Monitor Travel Expenses
Many people look forward to traveling after retirement but trips both big and small take careful planning, especially on a fixed income. Look to the simpler pleasures in life when planning your vacations and avoid unnecessary luxuries like first-class airfare or expensive hotels. Enjoying places you’ve never been before or nostalgic road trips doesn’t have to affect your financial future as long as you take the right steps along the way.
Consider a second career
We know this isn’t exactly what retirement is all about, but a second career or even a part-time job can significantly boost your fiscal, mental, and physical health. By staying in the workforce, you are inherently continuing to grow your mind, your relationships, and your savings. Imagine making an income on top of the retirement savings you already have. Whether it’s cashing in on graduate-level degrees through teaching or working in a local shop you love, a second career could be the best thing that ever happened to you.
Plan a decade or two for the future
You may have 30 years of retirement ahead of you, depending on your age. Between traveling the world, enjoying the grandchildren, and finally learning how to speak French, you may not see the need for foresight. Financial analysts do, though. In your eighties, nineties, and even hundreds, your goals and desires will likely be different from your fifties, sixties, and seventies. While there is no predicting the future, stay prepared for medical expenses and downsizing.
There is no shortcut to financial freedom but there are tried and true practices that will let you make the most of your retirement.
