Retirement Planning Tips


Never try to guess how much you will need in your retirement, plan for it!

Here at Retirement Happiness, we like to advise people to start thinking about their retirement as soon as possible, also, something a lot of people do not realise is that to start planning for your retirement you don’t actually need a financial specialist you start by yourself just by answering a few questions. Here are a few we like to start out with:

  • Where do you want to live when you retire?
  • Do you want to travel, go on a cruise maybe?
  • Play golf, go fishing etc?
  • Do you want to visit the grandkids?
  • Do you need a car?

Once you start thinking about these questions you will inevitably begin to think of more and more questions which is a good thing, write them down and restart the process. Once you have been through this process a couple of times you should have a decent list built up which will help you set your goals and help you to be able to start planning your retirement.

Where are you now financially?

The first real step to financial security is to fully grasp where you are now, only then can you take stock and start looking at how you can cut costs and increase savings for your impending retirement. If you have a financial advisor request a for a clear portrayal of your investment portfolio if you don’t have one then simply start a list like before but this time we’re looking at your investments and holdings.

  • What are your other assets stocks, shares, bonds?
  • Do you have any equity in your home?
  • Realistically what could you sell or rent it for?
  • How much do you have in savings?

Once you answered those hopefully they will help you think of a few more which you can then use to create your homemade investment portfolio.

How long will your investments last

Something else you will need to think about is how long will your investments last? If you retired at 65 and lived to 95 that’s 30 years you will need to have covered so the more you plan now the less you have to worry later. With the advancements in preventative medicine and healthy lifestyles, it is almost a sure thing you will live longer.

“Boomers are expected to live longer than any previous generation of Americans. Of the 3.4 million born in 1946 – including Bill Clinton, George and Laura Bush, Donald Trump, and Susan Sarandon… 2.8 million are still alive. The men can expect to live another 22 years, the women another 25.”

WebMD – Growing Old, Baby-Boomer Style

One is for sure you do not want to outlast your investments, so it is vital you take your time with this exercise to generate a practical monthly income for your retirement. Remember this is a process, not an end-point so don’t panic if the numbers seem shocking at first, be realistic and re-do the process a couple of times if you need to.

Start thinking about planning ahead

Now you have an idea of the amount you will need in retirement the next step would be to start thinking about planning ahead, try to anticipate what may happen in the future.

  • Will your portfolio match your required future income?
  • What about risk tolerance, are you happy with it?
  • Consider medical and unforeseen bills

All these are things you should consider when you begin planning for your retirement to ensure you don’t come up short as you want to live your retirement as stress-free as possible and not have to worry about how you will be able to pay for something.

We hope this post has given you some ideas and helped you start that difficult and arduous task of planning for one’s retirement but with some hard work and proper planning you will reap the dividends (pun intended) in the long run.

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