Planning for retirement living involves so much research since you have to factor in numerous factors such as the cost of living, where you expect to live, tax burden, lifestyle expenses and long term health costs. On the other hand, the definition of a happy retirement differs among different people. For some, it may mean spending more time with family. Or maybe you envision a transition from a full-time career into part-time work, visiting the golf course regularly, or starting a garden. Therefore, it is vital to figure out exactly how to get there financially by planning your strategy and building funds.
1. Define the life you want in your retirement
How do you want to spend your retirement? Write down all your goals, starting with the most important objectives. For now, focus on ideas rather than the budget and be as detailed as you can. For instance, instead of simply listing “travel”, you can list “touring foreign countries” or “or regular trips to the ocean”. This will create a clear picture of how you envision retirement. Moreover, you should be practical in order to rule out any unnecessary expenses and make sure your financial needs can be met even as you brainstorm. Focusing on realistic goals makes your retirement living plans even more tangible and attainable.
2. Analyze your assets
Take stock of any nontraditional assets that can be used to fund your retirement. Perhaps you restore cars or collect antiques. Most skills and hobbies can easily help you generate extra income during retirement. For instance, you can teach piano lessons or start trading antiques. After listing all your nontraditional assets, hobbies and skills, it’s time to think how these skills and hobbies can be morphed into money making ventures.
3. Assess your health
It is critical to be as healthy as possible in order to get the best out of retirement. This can be achieved through preventive medical attention such as preventive exams and checkups. Work with your doctor at each appointment to plan how you can improve your health. Healthy living can include simple measures such as commitment to healthy living, getting enough sleep, exercising or staying mentally sharp with books, puzzles and brain games. On the other hand, most healthy foods are satisfying and very delicious. One of the most effective ways of maintaining good health both mentally and physically is staying in contact with friends and family because it fights off any blues especially when you are retired.
4. How much do you want to work?
In most cases, retires either have to give up some retirement goals and stretch out limited funds or continue working in some capacity in order to pay for their dreams. Therefore, you must consider how much work is necessary when listing your retirement objectives. However, you should not wait until retirement to decide how much time you need or want to spend at work (number of hours per week) during retirement in order to reach your retirement goals. This will help you weigh the advantages and disadvantages of working.
5. Create your retirement budget
· How much you are earning
· The amount of debt you have
· The total cost of reaching your retirement goals
You can start by tracking your expenses and income for several months and figure out how much you’ll need to support the lifestyle you desire in retirement. You also need to assess your investment and diversify your portfolio but be sure to invest only in things you understand. Include monthly payments to settle your debts if you have any. Once you have successfully created a budget you can stick to, put it into action.
6. Start thinking and talking about moving to a retirement community
There is a lot to consider when it comes to choosing the ideal retirement community including your lifestyle, needs, and budget. Discuss all your expectations with loved ones in order to make the right decisions. In fact, a recent research by AARP (American Association for Retired Persons) shows that 75% of children with parents who are approaching retirement age have considered independent living options for their parents. Consider the importance of amenities, activities, and location.
Medical expenses are inevitable especially in retirement and you might even require extra help. Therefore, you need to consider purchasing long-term supplemental insurance if there is a chance you’ll eventually need to move to a retirement community.