News flash- You do not have to look like the people in the image to get started. You do not need to be a part of the baby boomers generation (born between 1946 and 1964) to ask yourself are you ready for retirement?
How about if you are younger than that? What if you are in your 20’s, 30’s, 40’s? What should you be doing now? The ideas you have should apply to your action plan. The first should be is to include your retirement in your monthly bills.
Do you work for a company that offers a plan? I highly suggest maxing out your contributions. You may have to give up some bells and whistles to make this happen as you start out in the workplace but the truth is you do not miss what you never had.
Are you someone who is seeking early retirement? We were and did. I consider retirement not working at jobs you do not want and really not having to work unless you want to work.
The truth is this all starts with a plan. You need a budget. This is my post on how to save money using a calendar.
Then you need to think about some of the things below.
Here are some tips on planning for your retirement:
1.What does retirement look like to you? Does it involve shifting to part-time or consulting work instead of pursuing a full-time life of leisure. Having a modified schedule can help you enjoy a less stressful life without totally giving up the fulfillment that you feel when working and engaging in the business that you’re in. Retirement to me looks like working where and when I want because I love to work. If you ask my husband retirement looks like cleaning the house, going to the beach every day, and hanging with me, his wife.
2. You need to prepare yourself psychologically and emotionally. The prestige and power that your work gives is not easy to let go, that’s why you have to prepare yourself that things will change once you retire and someone from your work will have to take your position.
3. Have a plan on what you want to do after retiring. Do you want to be able to do tennis or golf? Do you want to open a new business? Plan the new identity that you want for yourself, whether its a life of leisure or other passion that you want to pursue, you have to decide which path to take. This is the time for you to open yourself to new possibilities and not see it as closing of doors. If there are things that you wanted to do before but you can’t, now is the time to do it. That means you need an account set up right now and you need to put money into that. You can call it the dream account. It should not be int he same account as your retirement.
4. Of course you have to be prepared financially. Get those debts paid off, so that it won’t cut your retirement budget. Yes, cut those debts.
This is a post on How to get out of Debt Problems.
5. Make sure you’re vested in your workplace retirement plan and are contributing enough to get a 401(k) match. Know the date which you can keep all of your benefits, there are some cases where in you have to stick around for a few extra months or years to get a bigger retirement payout. Did you know you can also buy into retirement accounts. We purchased a couple of years of retirement from he state. We looked at how long we have to live to get our money back.
6. Know what fees are being deducted from your 401(k). If your funds aren’t delivering enough value to be worth the cost, consider switching to investments with lower fees.
7. Check your Social Security record, and make note of how much you will receive from Social Security and plan on when to take it. The later you start, the bigger the benefits but strategize also on the right time that you can still fully enjoy your benefits.
8. Sign-up for Medicare, you can do this three months before you turn 65.
9. Plan a post-retirement budget and try to live off that budget for a few months before you retire. This will help you decide whether your budget is realistic.
The goal of retirement savings is to be comfortable. When you think about what that means to you. Then write down the things that are important to you and make sure those are included in your budget. I can’t live without my gym membership so I would need that included in my monthly expenses.
The best thing you can do right now is getting your daily spending in check and then determine how much you can afford to put toward your future.