You need to take action to have a good retirement.
Have you been daydreaming about retirement?
Can you imagine what it will be like living without the stress of work?
According to a recent Investopedia article titled “5 Things to Do 10 Years from Retirement,” you will be stressed if you do not plan well for your retirement.
In reality, you should start preparing for retirement as soon as you start working.
At the very least, you should wait no longer than the ten years out from retirement to have answers to these following questions.
Do you want to work in retirement, or just dial it back a bit?
What do you want each day to look like?
Regardless how those retirement days look in your mind's eye, you need to have a plan now so you know how to finance them later.
What will your monthly budget be?
Once you have a better idea of your retirement, you can decide what will be necessary to fund your lifestyle to include hobbies, health, travel, and daily expenses.
From there, you can calculate what you need each month in terms of cash flow.
How will you fund your retirement?
Look at your different accounts and savings.
These may include pensions, Social Security, IRAs, and a 401(k).
Determine how much you will use from each source each month.
How should you adjust your investments?
As you draw near to retirement, your investments should change.
They should be less aggressive. That is a given.
You will be focusing more on retention than on growth.
In other words, in the words of cowboy philosopher Will Rogers, you will be more concerned with the return of your money than the return on your money.
Nevertheless, keeping up with inflation should be a priority.
Diversity should also be considered.
Do you need a professional financial advisor?
The answer is likely yes.
Retirement planning should be comprehensive.
Depending on your unique circumstances, it may involve such considerations as estate planning, survivorship planning, income, investments, business continuation, and inflation.
To be prepared for retirement, be sure you address these questions.
Reference: Investopedia (September 7, 2018) “5 Things to Do 10 Years from Retirement”