Is 2019 the year? If so, congratulations! Whether your plan is to stop working cold-turkey or ease into retirement slowly, there are a few things that will help make the transition easier and more stress-free.
1. Think now
Possibly the most important step is to just start! Many people put off thinking about retirement because they are afraid or uncertain about whether they will have enough money to fund their retirement goals. However, there truly is no time like the present. Be wise enough to start planning your possible course right now and devise ways in which you can secure your finances to avoid or mitigate potential hurdles.
2. Know your income
Add up the amounts you can expect to receive from stable sources like pensions or Social Security Income and from more flexible sources like your savings and investments. Not sure how much you can expect to draw from your savings and investments? This is a perfect time to call up your investment advisor for guidance.
3. Make a budget
Often times, household expenses change with retirement. These changes could come from reductions on dry cleaning, work clothing, travel costs, membership fees, etc. or from increases to vacations, hobbies, healthcare and the like. Planning your retirement budget ahead of time will help ensure that you are ready for these changes.
4. Do a test run!
Want to see how it all works together? Ask your financial advisor about putting together a plan that takes into account your various sources of retirement income, anticipated monthly expenses and bigger-picture goals like travel, gifting, downsizing, remodeling and more! Don’t have an advisor or want a second opinion? Our team provides stand-alone fee-based financial planning services that allow you to see how your finances might look during retirement and how changes can impact the plan.
In the context of retirement, I can’t say it enough… start now! Whatever your finances, it’s important to know that your retirement income, savings and investment resources are compatible with your retirement dreams and goals. If you are concerned about weaknesses in your plan or are wondering if you have enough to retire ahead of schedule, solid guidance from a trusted expert can make a huge difference.
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