People retire because nobody wants to work forever. Everyone wants to take a break from late nights and make memories for the rest of the years.
But as we age, we are getting closer and closer to the realities of retirement. The big question now is: are you ready to retire?
Retirement preparedness does not only focus on being physically, emotionally, and mentally ready. The most crucial part of retiring is being financially set, which does not just happen in a blink of an eye, but should have been anticipated and planned for years ahead.
So, if your answer is no, then follow these effective retirement tips to help you secure your retirement and live happy when you get there.
What are the common things retirees want to do?
Most retirees in the United States travel state to state and across different continents, spend time with their family, pursue their hobbies, start businesses, engage in sports such as golf, fishing, gardening, volunteering, workout, and renovate their homes; you might have planned to do at least one or more of these stuff when you get to your retirement.
Things that retirees should do:
Retirement tip no. 1
Save as much as how long you expect to live. By doing so, you will be able to save enough to sustain your daily necessities and activities over time. Take all the opportunities to save.
Remember that it is neither late nor too soon to save for your retirement especially during your 50s, even if you are just a starter.
Retirement tip no. 2
Always be a conscious spender. Make sure that you have a separate budget for your daily needs, bills and insurances. This is in order for you to avoid your retirement savings to be touched and used.
Retirement tip no. 3
Keep in mind the discipline. Don’t be tempted to spend your savings to the things you just want, especially if it’s just a shop impulse.
Retirement tip no. 4
Max out your retirement contributions by catching up to the maximum allowed amount in your plans.
Consult your tax advisors about establishing an individual retirement account (IRA) and listen to what they are going to say about which plans will do best for you.
There are two IRA choices in building an efficient retirement plan.
First is the Traditional IRA where the investors’ tax-deductible contributions are limited to people under age 70 ½. It has no income restrictions, but a lot of tax implications conditions and a marital restriction. Moreover, until you make withdrawals during retirement, you have a good opportunity to grow a tax-deferred income.
Another choice is Roth IRA which may be good for you once you meet its income restrictions for there is no age limit here. Once you have turned age 59½ and you’ve held the account for at least five years, qualified withdrawals and earnings are federal-tax free (or state-tax free).
Retirement tip no. 5
Take advantage of the “free money” your employers will give you. Use it as a matching contribution to your retirement plan regardless of how huge or small the raise is. The match is possibly factored into your overall salary and benefits package.
Retirement tip no. 6
Invest as much as you can save. There are lots of investment choices available in the market – equities, stocks, bonds, mutual funds, etc. Consult your financial advisor to know which of these fits to your present situation.
Retirement tip no. 7
Never give up on your dream retirement. As long as can work for it, work hard without pressuring yourself with “what ifs”. Whatever you want to do and wherever you want to go in your retirement depend on what you have done today to fulfill them.
Remember that the mere size of your paycheck or income is not the only means in building a financially secured retirement, but about how you manage what you have.