Are you ready to retire?
Have you made a plan & implemented it so that you can safely retire?? Most people either plan themselves or use a financial advisor to plan it for them. The focus is on financial advise but retirement is much more than that. You need to look at the key things you will be doing, need during retirement. After all your retirement can be a long one of about 30 years and you need to be ready and focused as you implement your plan.
Have a plan for retiring with enough income to live on safely. Savings safely invested to last your lifetime. The rule of thumb is to have enough money saved that the income from it will pay your basic monthly expenses. This savings will be supplemented by social security income and any pensions. Ensure you plan for investing for safe return and enough is being cashed in to pay for the monthly expenses and live on. You also need a plan for cashing your savings as you need them. Possibly draw out about 4% a year. Ensure the investments are earning enough to replenish them each year.
Use calculators to plan how to invest money, what can safely be drawn each year
Supplement savings by working part time
Look for a job that pays for health insurance
Plan a monthly budget to ensure you are not spending more than it’s coming in. Cut out anything that is not needed and look at key items to ensure you have the money to pay for them on a monthly basis.
Pay down all your debt including your mortgage. Be sure to focus on the high interest debt first, once that is paid off, move on to the next highest and so on. Before you know it, you will have paid off all debt and can focus on saving money for a rainy day and for retirement. Don’t forget to keep both credit card and mortgage payments current while you are paying down debt.
Where to live
Once your children leave the nest and you are ready to downsize, you need to research carefully where you and your spouse will live. This can be a town close to your children or other family members. Also, be sure to rent for a year to ensure
What to do
If you find that you need to work to survive, you need to have a job. maybe to supplement social security and your savings, you can get a part time job locally that keeps you sharp and allows for daily interaction. Volunteering is a way to find jobs and find what you like doing. Sharing your life gained skills also provide a way for you to make money and stay busy. Most Boomers find that they need to stay busy so they don’t become bored. Some people find that helping their children with child rearing is a way to stay connected and busy.
If you are like most people, as you get older, you will experience some health issues. Obviously, you want to be healthy and having a strict exercise, diet and mind attitude can help you stay healthy. You also need to make plans to move to smaller place, assisted living, etc. as you get older. Having someone in the family, who you can trust, can help you make appropriate decisions when the time comes for changes. Signing up for Medicare and supplemental insurance when you turn 65 is key to having health insurance during retirement. Remember, you are in control of your health so ask plenty of questions and be a partner in your health with your doctor.
If you have planned well, you should ease right into a new lifestyle and enjoy the rest of your life.