Preparing For Retirement
Retirement can bring a mix of conflicting emotions from anticipation and excitement to anxiety and fear. It’s one of the biggest events we experience in our adult lives. Most of us anticipate and save for decades, but the transition from receiving a paycheck to living off the wealth you have accumulated, is an unnerving transition. Common questions include:
- Have I saved enough?
- How will I spend my time?
- Will I run out of money?
- Will I be able to do the things I want?
How Can You Be Ready For Retirement?
Retirement success will look different from one person to the next. For some, retirement success could mean starting an encore career, for others it might mean helping with grandchildren and spending time with loved ones. No matter what your retirement vision looks like, it won’t be possible without the financial sustainability. The key to retirement success is aligning your vision with you need and then building a financial plan to make that happen.
Get Clear On Your Goals
The clearer you can get about what your day-to-day life will look like in retirement, the more prepared you will be to pay for it while still reaching your other financial goals. The first step is to gain clarity about how you will spend your time. Brainstorm the different things you would enjoy doing.
If you enjoy golfing, how often would you like to tee off? Will you want to buy a membership to a certain course or join a country club? If you want to travel to visit family, how often would you like to go somewhere?
Figure Out Your Needs
One of the most important pieces of the retirement planning is trying to decide how much you would like to live off of. To get a clearer view, look at your current expenses and consider how they may change. Healthcare, work related expenses, paying off your mortgage, or no longer making retirement contributions will lower what you need. Also, remember, you will have to add in expenses for any traveling or hobbies you put in your vision plan.
Next Steps: Putting The Framework In Place
The next step is to merge your vision with your resources. This takes careful consideration and planning to get right. You’ll need to decide which strategies will best suit your investments and tax situation, now and in retirement. You will also need to build the foundation for your retirement income after you stop receiving a traditional paycheck.
*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax, legal, or investment advice and may not be relied on for purposes of avoiding any federal tax penalties. Individuals are encouraged to seek advice from their accountant, financial planner, and counsel. Neither the information presented, nor any opinion expressed constitutes a representation by WM Wealth Planning as a specific recommendation to the purchase or sale of any securities/investment. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by WM Wealth Planning for educational purposes.*