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When you think of retirement, what is it that you picture? Are you sitting on the beach? Or perhaps spending time with your grandchildren enjoying the special moments? What if your ideal retirement was just to be financially sounds?
If I was in front of a room full of people and I went around asking each person what their picture-perfect retirement looked like, do you think I’d get all the same answers? Probably not, and that’s OK.
Below are 4 quick tips to help anyone prepare for retirement, no matter what your picture may look like.
1. You Need a Plan: First things first. If you don’t have a plan, you’re not going to get anywhere. Sure you might have a “sizable” portfolio and you’ve been doing great with this bull market… or have you? Planning and preparation is key to your retirement. Having a plan to know how much income you’ll have, debt you have to pay off and money you still need to save are just some of the basics.
2. Prepare for the Worst: This should be an important component in your retirement plan. 70% of Americans will need some form of healthcare assistance by the age of 58 years young. That assistance includes, long term care, nursing care or at-home care costs. Knowing that your financial and retirement plan takes in to account the possibility, that one day, you too, may be in that situation where you need those types of care, puts you ahead of the game with a better advantage not only for your portfolio, but for your family.
3. Plan for Change: It’s not just about your money, it’s about your life. Many people who enter retirement, aren’t prepared for the emotional and mental changes associated. One key tip: really think about it. When you retire, do you want to stop working completely, or would you prefer to have a part-time job? Working for years upon years and then suddenly stopping is a huge transition that many are not mentally prepared for.
4. Get Help: Having an ally on your journey is so unbelievably important. And what’s even more important is having a trusted fiduciary in your corner. A true fiduciary is going to act in your best interest and make sure you are prepared for the up’s and down’s in retirement. A true fiduciary is going to make sure you have a hedging strategy in place and most importantly that you have a sound financial plan for the rest of your years.
However you perceive your retirement, don’t let it feel too daunting. Some of you may be thrilled and set for life, others may have to make some cuts or change their standard of living. Sure it’s easier said than lived, but wouldn’t you prefer to have a plan in place for any situation? Being prepared is the number one item on any list to ensure that if something goes astray, you have a plan to keep you on your course.
Remember, it’s not just about your money, it’s about your life.