We all dream of a retirement where we don’t have to worry about money. We can spend more time with family and loved ones, traveling, or playing golf. We can do what we want, when we want to do it or do nothing at all. It’s our choice in our dream retirement. However, for many Americans, retirement will hardly be the one they dream about. It’ll be more like a nightmare. Why, because they haven’t properly planned for it. Have you?
Once you have decided that it’s time to trade in your work badge for a passport, it’s important to figure out how you’re going to finance you’re retirement.
Below are three important things to consider prior to retiring:
- Becoming Debt-Free:
You might be preparing to retire in the next 12 months or it may be years away. Whatever your timeframe, it is always wise to plan ahead. The younger the better. Shockingly, one-third of Americans have no (zero, zilch, nada) retirement savings and many more are drowning in debt. Debt and retirement don’t mix. It can be tough to live on a fixed income while making monthly credit card or mortgage payments.
Be strategic about paying off your debts. With a proper plan, you could be completely debt free including your mortgage much sooner than you might imagine. Do you know the exact date that you will be completely debt-free?
- Protecting Your Retirement Savings:
Many people had to postpone retiring because they lost a large portion of their 401K savings when the stock market plummeted a few years ago. As some companies scrambled to survive, many employees were forced to retire early or worse yet, were laid off. Some people didn’t have time to wait for the market to turn around. They had to liquidate their diminished 401K just to survive. For others, it took years for their retirement accounts to get back to where it was prior to the downturn. Older employees don’t have the luxury of time. That’s why once you do retire, it is critical to protect your savings from market losses, yet still earn a good return on your money.
- Knowing Your Financial Independence Number:
Your Financial Independence Number (FIN) is the amount of money you need to enjoy the lifestyle you desire, without having to work another day in your life. Oftentimes, this is the most neglected part of retirement planning.
No one wants to outlive their retirement savings, but that’s the risk you run when you don’t know your FIN. With proper planning, you can have more than enough to retire comfortably. Failure to plan can leave you having to work well into your “golden years” or lowering your lifestyle expectations significantly. It is one thing to take a volunteer or part-time job because you want to versus needing to work to make ends meet in your 60’s, 70’s and even 80’s.
Retirement success is achievable with proper planning. Click here to schedule your complimentary retirement analysis now!