A rewarding retirement does not just happen without planning.
No one wants to struggle in retirement.
You probably want to be financially secure.
You probably also want to have enriching and enjoyable experiences.
According to a recent The Street article titled “8 Essential Steps to Achieve Retirement Success,” there are steps you should take now to set yourself up for a good retirement.
What are they?
Know your budget.
Perhaps this includes hobbies, travel, and family.
Whatever you plan, you should create a budget and give it a test run to see if it is sufficient for your goals and desired lifestyle.
Once you know this, you will be better able to adjust either your expectations or financial needs for retirement.
Pay off debt and downsize.
Do not go into retirement with debt.
You should pay off debt before you stop working.
Another way to save money in retirement is to downsize.
The money you spend on maintenance and utilities can be significantly decreased.
This will help with expenses in retirement as well as helping you to pay off your current debt.
Review your portfolio.
When you are young, your portfolio should be aggressive to help your money grow for retirement.
As you near retirement age, you should have a far more conservative approach.
There is no need to swing for the fence.
In retirement, your money should keep up with inflation and your financial needs.
Understand social security.
There are ways to maximize your Social Security benefits.
This is largely based on when you begin taking those distributions.
If you need help determining when you and your spouse should each file for your benefits, you may want to get a professional opinion.
Update your estate plan.
Life changes in retirement.
In turn, these changes could influence your estate planning.
Work with an experienced estate planning attorney to ensure your bases are covered with your wills, trusts, and powers of attorney.
While you are at it, make sure your estate plan and your assets titles and beneficiary designations are in alignment.
Communicate with your family.
Do you have adult children who still depend on you financially?
If so, you will need to cut them lose.
Talk with them about the need to become more independent as you prepare for retirement.
Remove emotion from your decisions.
You and your spouse should discuss your expectations for retirement.
This should include lifestyle expectations and budget changes.
Practical logic is important in making decisions.
Work with professionals.
It is not weak to admit what you do not understand.
You should seek wisdom and advice from professional financial planners and estate planning attorneys.
These individuals can help you create a plan to reach your goals.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: The Street (April 12, 2018) “8 Essential Steps to Achieve Retirement Success”