When you hear the word retirement what do you think about? Like most people, you probably envision yourself traveling, spending time with the grandchildren, or finishing some project around your home. Other people dream about opening a small business or even starting a new career in a diverse field.
No matter what your plans or dreams are for retirement you’ll need money to fulfill these dreams. Furthermore, you’ll need to consider if Social Security benefits, personal savings or your other retirement accounts are enough to achieve these dreams. Therefore, your decision on when to retire will also play a critical role in what options are available for you. Before making your retirement plans, you’ll need a retirement strategy plan that helps you make this decision.
Today, most people talk about retiring early or waiting until they’re 67 or 68 to retire. If you retire before 65 you won’t receive your full Social Security benefits. That’s why a retirement strategy guide is so important. In the plan, you’ll need to factor in your life expectancy and money to cover your expenses for 25 to 30 years. Furthermore, you’ll need to consider inflation and travel in your plan. Below is a guideline to help you make a retirement strategy plan that is right for you. Follow these steps and when you retire you’ll breathe happy.
- Look at your life expectancy, if there are no health issues, you’ll live another twenty-five to thirty years and need more money when you retire.
- Calculate how much money you’ll need when you retire. Your estimated retirement expenses are 80% more or less of your expenses before retirement. Furthermore, if you plan on traveling you’ll need to add ten percent to your calculations.
- Create a spreadsheet or balance sheet that lists your assets and liabilities you’ve accumulated before retirement.
- Make a second spreadsheet that lists your retirement income sources such as Social Security benefits, investment accounts, personal savings, pensions, and money earned before retirement.
- Live a modest life today and work hard towards saving for your retirement. Make a few sacrifices today, so when you retire you can fulfill your dreams.
- Take full advantage of your tax-deferred or tax-free saving opportunities. Save the maximum the plan allows each year. Always invest in your retirement.
- Each year, invest the maximum allowed for your traditional, Roth IRA.
- Talk with a financial planner about your retirement objectives and what is the best way to achieve your objectives.
- Expand your stock or investment accounts by taking a few risks.
- Certain investment accounts will double each year for an extended period of time. Compute how long your current investment will double.
- Start now and have all your paperwork in order.
If you plan now and make a retirement strategy plan you’ll have a better life after retirement. Remember, you might make a few sacrifices now, but in the long run you’ll be financially set for the rest of your life.