Everyone dream of a happy and gleeful retirement. Who doesn’t want one? The reason why retirement is called golden years because it really should be one – golden, relating to treasured moments of life. So, how do you make your retirement golden? Building a strong financial safety for retirement takes a lot of time, effort, and even money. But those who planned well will reap the fruits of their efforts and have stress free golden years. Your vision is important when planning. If you plan with success in mind, success is what will happen. To help you with, let us share with you the keys to successful retirement planning so that you can open the door to a golden future.
Retirement Key # 1: Goal Setting
Setting goals are the first step in turning the invisible to visible. Don’t be afraid to set your goal high, so that you will have more of what you want or just earn what you need, but not lower. Think what you want your retirement to be. What are the changes you expect to happen once you retire? How will you live each day of your retirement? How much will you need to retire? What do you want to accomplish in this phase?
Your savings or finances will play a great role that could make or break your entire retirement. In making your goals, base it on your retirement income and life expectancy. Factor in all the activities you want to do such as new hobbies, places to visit, business to establish, restaurants to eat, etc.
Retirement Key #2: Write Your Plans
Retirement plans will be more likely to succeed if it goes hand in hand with a financial plan. To make it golden, this stage of your life deserves to be treated with a holistic approach and a carefully-created plan.
Write your plans, both financially and the things you plan to do in retirement. Achieving a successful retirement is higher when you put your goals and plan of actions in writing. That way you’ll be able to analyze your needs and align them with your goals. Don’t forget to include healthcare in your plans!
Retirement Key #3: Include Healthcare and Long Term Care Needs
Do you want a surefire way to a retirement downfall? That’s easy, just forget about this key!
Yes, you read it right. Not having healthcare and long term care plans will make you a candidate of having a stressful retirement.
It is easy to forget or underestimate your healthcare and long term care needs. Some will even deny that they might need health care services and long term care because they are very healthy at the moment they are planning for retirement. But then, no matter how healthy you are right now, I urge you to include healthcare costs and long term care in your retirement plans and strategize how you will face them once the need arises. It is beneficial to learn various policies that can help you get through a future health crisis. Certain health insurance, Medicare, Medicare supplement plans, Medicaid and long term care insurance can provide benefits and are helpful in paying for the needs. Check them out and add them to your mix of strategies.
Retirement Key #4: Maintain Financial Comfort
What is the best way to achieve and maintain financial comfort in retirement? Save!
Save early as much as you could and take advantage of compounding interest. But if you were unable to save early and are already at the prime age of your life, don’t lose hope! “Roll with the punches” and be positive! You can adjust some parts of your current lifestyle and make room for additional savings.
If you are 55 or older, there are still money-saving ways you could do. There is a “catch up” contributions offered by the government so you can save a lit bit more. Maximize your retirement contributions or look for investments that can multiply your money and have a steady income. In looking for additional ways to save money, it is important that you will not leave any stones unturned. Explore every saving and investment vehicles available to you.
Retirement Key #5: Fortify Your Financial Plan
Making your money last throughout your entire retirement while sustaining your needs is an important goal of every financial plan. Make sure that you have a clear map of how you are going to spend your savings and income once you enter retirement. Remember, your entire finances are now your responsibility, be careful how you manage it. Create a retirement budget, so you won’t fall into a grave mistake that new retirees tend to make, that is overspending.
Determine what age you will start to withdraw from your retirement accounts and how much you will spend daily, monthly or even yearly.
Strategize when to tap into your Social Security benefits because the age when you decide to start getting benefits will affect how much you’ll receive in the years to come. Note that the later you tap into your Social Security benefits, the larger is the number of benefits that you’ll be able to collect.
Success is more likely to happen if you work with a trusted financial expert or advisor. With the help of an advisor, you will be able to assess what strategies will work best for you and your spouse. You will also determine how you can maximize your portfolio, investments, savings and retirement income in ways that will yield a higher benefit for your golden years.
To attain a successful retirement, taking time to plan and conscientious saving is important. However, help from retirement or financial expert is also a great idea if you want to attain your goals and make your plans stronger.