10 Things To Consider Before Retiring
Retirement is around the proverbial corner. Everybody has to retire at some point in their lives so whether you are just beginning in the working world or rounding the bend toward the end of it retirement and how you want to experience it is something to consider. Some of the top 10 things to think about before retiring are: your time, bills, health, mortgage, savings, income, investments, estate, insurance, and emotional state of being.
It is always good to have an idea of how you would like to spend your time after you retire. Once you have an idea in mind, make a plan and figure out how if your financial planning supports this idea. Where would you like to spend your time after retirement? These questions are crucial to contemplate so that you quality of life is experienced without struggle and with ease.
Retirement brings with it some major changes for life as. It is important to get in tune with the how much money your plan will cost you in the future. What are you spending now and what does your projected plan present as far as bills and expenses? Are you factoring in gifts, taxes, and emergencies? It might be a good idea to consult a financial planner to help with projecting your annual income and the requirements you will need to meet in order to attain peace of mind regarding your cost of living in your new plan.
One of the main things to consider before retirement is your health. This above all will determine how you experience your “golden age.” Be proactive with your health exercise, eat well, etc. Health care cost go up and down every year and it can be devastating if you don’t have a plan to offset these cost should you need to. It is a good idea to put aside money for these emergencies so you have a cushion or start thinking about what type of health insurance would best serve you and factor this cost into your monthly bills.
When you are at the point of considering retirement you should take the time to figure out if it will serve you to have a mortgage. Will you be refinancing, will you do a reverse mortgage, will you sell your home? Many people figure out that after they retire, they have more difficulties borrowing money or end up with much higher rates so it’s good to consider these things before you retire.
It has been said to save for a rainy day and over the years you just might find yourself ready for a storm. Meaning take care of you! It is always good to have at least six months to a year of expenses in saving for retirement. Start figuring out how to boost the buck up if that lump of money you have in your closet or savings account isn’t enough.
So we just looked at savings right, now take a peak into the future and determine if your retirement income and projected income from Social Security will be sufficient enough to cover your monthly responsibilities. If not cut out what you don’t need and make some new adjustments.
Strategies you have implemented in the past may not benefit you in the future so it’s recommended that you speak with a certified investment broker to access the best plan that will better serve you and your investments.
It’s a touchy subject for some to think about an estate plan but it is crucial to have this in order to protect your assets and is extremely helpful to delegate who receives what when you leave this earth. So review your estate plan if you haven’t already, update your will and trust. If you don’t have a will or trust, it’s far better to do one now while you are here.
It’s suggested to purchase long term insurance before you retire rather than wait till after. So start looking into different providers and pick one that makes you feel most comfortable.
Retirement can be very exciting. It’s a time for you to write a new chapter for your life and keep your options open. If you find that you are eligible for retirement but not quite ready to leave the workforce, stay. Some even start school, travel, discover new passions and creativity that they didn’t have time to explore while employed. It is a process but that certainly does not mean you can’t enjoy it.