Many people think about retirement planning like it is a depressing activity that has to be done. However, planning for the next phase of your life should be exciting! Now you have time to do everything you couldn’t do back then, the only limit is your creativity.
You have probably thought about your retirement financials already. Not when this phase is closer, it’s time to be more precise with everything, take a pen and write down how much your desired retirement activities will cost you and how you’re going to afford them.
1. How much money do you want to spend each month?
When you are younger, you can spend 70% of your income and that’s it. However, when you’re close to retirement, you need to think about real numbers. Think what do you want and how much you can spend. Some want to play golf, others want to see the world…Think about expensive hobbies you’re planning to do and so on.
Once you have a number, you may think if it’s realistic or not. Do you have enough money for everything? You can perform a simple test-drive because you have incomes from your job to support you. If you can perform every activity you want, then you’re confident about your budget. If not, you could reconsider something and change the plan before it’s too late.
2. Do you have your financial documents in check?
Do you remember about all your accounts, insurances, benefits, 401(k)s and other financial documents that you’ve been saving for your retirement? Now it’s time to put them into one pile. It may look like a complicated task, but it needs to be done before the retirement.
Think about electronic bill payments or automated deposits. You could also consider services that allow you to keep track of all your accounts from one place. If you simplify your record-keeping function in advance, you will get a great control over your life and free a lot of time to enjoy your retirement.
3. What about your monthly payments?
Your expected retirement date affects the monthly payment you’re going to receive. The later you lock in the benefits, the more you will get. That’s why many people choose to wait and increase their incomes, but there are also people who want to begin living their dreams earlier so they lock on the benefits early.
Just don’t make a quick decision and think about the consequences. As a rule of thumb, apply for benefits three months before you want to start collecting them. If you want to become a traveler, use a direct deposit that won’t let you miss your check.
Here’s What To Do Now
Don’t allow outdated books about retirement planning convince you to make wrong decisions. There are a lot of things to consider that make your retirement financially secure, and your financial consultant is here to help. Together, we will create a plan that will let you enjoy your golden years without worrying about money.
Give us a call today at 410-435-3270 or click here to place your request online.