Retirement provides you with the opportunity to relax, pick up new hobbies, travel the world and spend more time doing things that bring you joy. However, you can only enjoy all the wonders that retirement brings if you are financially prepared for it. Retirement can sneak up on you quickly, and addressing your finances well before then can help you to live out your golden years worry-free. Here is a checklist of things to do before you retire so that you can be financially sound, stress-free and ready to take on the best years of your life.
Make Sure You Will Have Enough Money Saved
Will you outlive your savings? Experts say that you need to have roughly 70% of your yearly salary saved to be able to live comfortably during retirement. However, this number changes if you plan to travel around the world or do other lavish activities that require a hefty amount of money. Additionally, begin to think about starting or contributing more money towards an emergency fund. You never know when unexpected medical emergencies will arise and you want to ensure you’ll be prepared for these circumstances.
If you haven’t already, look into developing a retirement plan that includes an IRA account or a 401(k). 401(k) plans allow you to contribute monthly payments from your paycheck into an account, and some employees even match the contributions up to a certain percentage. A traditional IRA and Roth IRA are great options as well that have no age restriction and are more accessible.
Determine Your Assets
Do you have an idea of what your net worth is? What properties do you own? Take stock of all your vehicles, land, properties, bonds, investments, stocks and other assets so that you can plan accordingly for your retirement fund. Do you have any debts that need to be paid off? Your income will be able to stretch further if you don’t have to make monthly payments to pay off debt. Take control of your finances and be knowledgeable about your income and expenses.
Determine a Budget
Ideally, we all want to have an overabundance of money to live out our retirement lavishly. However, we all are in different financial situations and have varying funds to live on. Setting yourself a budget provides you with a realistic expectation of how your month-to-month expenses will affect your retirement. Make a list of your fixed and variable expenses and figure out how much money you will need to save to have all your expenses covered.
Speak With a Financial Advisor
Financial Advisors are experts at helping others reach financial independence and plan for their retirement. What better way to plan out your retirement than by speaking with an expert. They can help you assess your financial situation, develop goals and create a plan for a way to achieve them and ensure financial success.
At Care Financial, we want to be your partner in developing the best retirement plan for you, so that you can live out your golden years with ease. Discover the wealth of possibilities you can offer yourself by choosing Care Financial. We invite you to contact us today about discussing your financial future.
Care Financial is a privately owned and operated business providing families, individuals and businesses with comprehensive wealth management strategies. Contact us online at www.carefinancialonline.com or call us at 251-633-7122.
