Whether you imagine retirement being five or 50 years away,
there are things you can do today to start preparing for it financially. The
tips below can help you get ready to make this a rewarding and comfortable
stage of life.
What does retirement mean to you? The answers to this can
vary widely. Some people plan
to retire at 40 while others hope to work for as long as they possibly can.
Most people fall somewhere in the middle of these extremes, but retirement can
still mean many different things to different people. You may spend it raising
your grandchildren, traveling, returning to school, or becoming deeply involved
in your community. Think about what you'd like to do and when, and review this
decision periodically as you get older since you may find that your values and
plans change.
To have a successful
investment journey, you should periodically review how much money you
expect to have when you retire. This may be a combination of your own savings
plus Social Security and pension benefits. How this can be successfully done is demonstrated by Gordon Simmons SEO. Be aware that this can be
complicated if you are divorced or widowed. For example, if you were married
for a certain amount of time and your ex-spouse made substantially more than
you, you might be able to draw based on their Social Security earnings. Your
divorce agreement may also allow for you to get a portion of an ex-spouse's
pension. Knowing this information can help guide you in your plans for after
retirement and can also help you determine whether you need to up your
contributions. Getting consulting with a professional local company e.g. in D.C. Pine Financial Group Washington DC, can surely help.
Another important consideration is protecting your assets,
particularly if you want to be able to leave something to your children. For
example, you might want to look into Medicaid spend-down laws if these would
apply to you and what you can do now to best position yourself financially if
you do need to access Medicaid. You may also want to review a guide on filial
responsibility laws. In certain filial
responsibility states, your children could be held responsible for your
care if you become impoverished because of medical costs or for any other
reason. Talking to experts, such as an attorney and a financial professional,
may help you better understand your options based on your personal situation.
There are various formulas for figuring out how much money
you'll need when you retire based on your present spending, but these are
guidelines only. Someone who is going to move to a country with a much lower
cost of living where they plan to enjoy a simple lifestyle is going to have far
fewer needs, whatever their present expenditures, than someone who is going to
spend a lot of time going on cruises or simply maintaining their present
lifestyle. You may also have plans to run a small side business or continue
earning some money in another way even after you officially leave your job.
Doing the math and having some numbers to aim for can help you make sure that
you are contributing sufficient amounts to your various investments.