The journey towards retirement is one that should fill you with excitement, not fear or dread. In fact, with a little bit of planning, you can not only look forward to your retirement, but you can live out your golden years in the lifestyle that you always dreamed about. The key to enjoying your retirement can be found when you complete the following five easy steps.
Step #1. Make A Retirement Budget Based On Your Ideal Retirement.
As any good retirement financial planning seminar will tell you, in order to enjoy your retirement, you should first make a budget. This budget doesn’t have to make you have flash backs to your days of student loans and living off of Ramen noodles, instead, you can budget for those trips to Italy or the days spent lounging on the beach with a margarita in hand.
The first step towards making your budget is to ask the following questions:
- Will you still work a fun part-time job during your retirement?
- Will you use your retirement years to travel?
- What do you look forward to most during retirement?
- Where do you want to live during your retirement?
The above types of questions can help you to personalize your vision of the ideal retirement. Once you have a clear vision, you can start to take a look at your funds. Do you have the assets needed to make your retirement a reality? How much fixed income will you be earning on a monthly basis? After answering the latter questions, you will be ready to make a budget. Don’t forget to decide between fixed and essential costs. After all, retirement should be the time when you can splurge and “live a little;” the budget is just here to make sure that you remain financially comfortable.
Step #2. Maximize Social Security
Did you know that you can earn up to eight percent a year on your money in a risk-free fashion? To earn extra money on your social security, all you have to do is be a little patient. For example, if social security would normally pay you $24,000 a year starting at 62, you can instead earn $42,000 per year by waiting until you are 70 to claim it. Keep in mind that social security will continue to pay out for as long as you live, which means that the extra $18,000 you earn each year can be incredibly beneficial.
Step #3. Contribute To Your Retirement Accounts
As part of your retirement planning, you should always try to maximize your yearly contributions to your retirement accounts. As a general rule of thumb, you can place $18,500 in your 401(k) each year. When you turn 50, you can place an additional $6,000 in the 401(k) on a yearly basis. Keep in mind that depending on your yearly earnings, you can also place money in both an IRA and a Roth IRA. Knowing what accounts you want to create will depend on your specific retirement tax strategies. Fortunately, when you attend a retirement tax planning seminar, you will be able to learn the ins and outs for each type of retirement account.
Step #4. Review Your Health Insurance Options
Don’t forget to obtain an affordable, and reliable, health insurance for your retirement years. In addition to Medicare, which will begin when you are 65, you can also obtain private health care. Knowing what health insurance plan is right for you will depend on your unique health needs. With this in mind, health care should also be a part of your retirement budget.
Step #5. Attend A Retirement Planning Workshop
Fortified Retirement is proud to offer a wide variety of free educational courses and seminars. By attending a retirement planning workshop, you can learn how to complete the above four steps, discover the optimal tax strategies for your golden years, and breathe a little easier knowing that planning for retirement doesn’t have to be a stressful experience.
As you begin the process of fortifying your retirement, don’t forget to complete the above five steps. For more information about how a retirement planning workshop can help you enjoy your ideal retirement, contact a member of the Fortified Retirement team today.
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