Planning for your retirement is not a difficult task if you are not weighed down with all of the little details. You do not want to have to worry when it comes to making sure that you are doing everything correctly. Planning for retirement is like creating an outline for an essay. The outline will highlight all of the important parts that you want to include and not leave out.
With that, consider the following items that should be included as you create an outline in planning for you retirement:
- Manage your expectations
There is a rule of thumb saying that you might need almost 70% of the pre-retirement income in order to comfortably live in retirement. However, it is only a general rule. Once you make more plans in life, you might need more than that. However, most people would not need this much if they moved into a less expensive area of the country and would live a more simple lifestyle.
- Account for the changing expenses
Housing expenses often tend to go down once we are able to pay the mortgage and even by downsizing into a less expensive and smaller home. Some other expenses may also decrease such as the cost for clothes, food, insurance, and recreational activities. However, medical care might be an expense that could go up.
- Avoid short-changing your life expectancy
It is a fact that most pre-retirees underestimate the duration of their lives. You must not short-change your life expectancy and still plan to live beyond a specific age. By doing this, your savings could run but your social security will not.
It is unpredictable how long you will live, so you should be sure to plan for your future beyond the amount of time that you think you may have. This will save you a lot of hassle in the long run if you were to run into this issue.
- Be prepared for anything
You may already have some plans for your retirement, but these plans do not always work out the way that you expected. It is wise to do a little bit of advanced homework in order to see if your retirement dreams can match up with your actual plans.
- Seek professional help
Planning for your retirement can be a very difficult and time consuming task. One of the best things that you could do for yourself would be to seek the help of a professional that is an expert in the field. You can take your plans to a retirement planner and have them adjust or even add to them.
By hiring a retirement planner, they will be able to guide you through the process and give you a piece of mind that you may not have had before. An expert retirement planner and financial advisor will be able to set you up for success in your future.
If you are ready to start planning today and would like professional help, contact The Retirement Planning Group today! You will be able to set up an appointment and a free consultation.