You’ve put in a lot of time and effort over the years to get to this point. The next big item is approaching quickly, and that is retirement. To help you prepare for life after the 9-to-5, we’ve compiled a list of four tasks that must be completed first.
Retirement is a chance to do whatever makes you happy, without the pressure of a regular job, whether that’s travelling, pursuing a lifetime hobby, or just sitting back and relaxing. However, one thing is certain: you need to save and plan like never before well in advance of really calling it quits. What do you see as your greatest obstacle? In order to guarantee yourself a comfortable retirement in which you may spend your time doing the things that truly matter to you.
These are the measures you can take today to ensure a comfortable retirement.
Be careful not to overextend yourself financially on necessary home repairs
Inexpensive home repairs are rare. Problems at home, such as a leaking roof or a malfunctioning appliance, can rapidly become a major inconvenience and drain your finances.
You shouldn’t fret, though. If you have America’s 1st Choice Home Club as your home warranty provider, you can rest easy knowing you won’t have to worry about any unexpectedly high repair costs. Everything in your home can be safeguarded, from electronics to electrical, plumbing, HVAC, and cooling systems.
In addition, if something goes wrong, their in-house service team is always there to help and guarantee a smooth repair process. Even if you don’t have somebody in mind, they’ll send a specialist from their extensive network to help you.
All around the United States, homeowners are signing up for AFC Home Club because of the money they save, the quality of service they receive, and the peace of mind it provides.
Think Income Not Investments
Respected economists like Nobel laureate Robert Merton stress the need of estimating and planning for retirement income needs rather than worrying about investments and how much money you’ll need. He suggests breaking down your financial requirements into three buckets:
- To maintain the barest minimum standard of living in retirement, this section covers the amount of money you will need to receive as a guaranteed monthly benefit. You should invest your retirement funds so that you have access to this income stream for the rest of your life. Among the most well-known types of permanent income are Social Security and life annuities.
- Earnings potential — This section is where you can specify the amount of money you need to maintain the standard of living of your choice. Earnings in this bracket should come from reasonably safe investments.
- Discretionary spending — This is where you can afford to take some financial chances.
Having a reliable source of income in retirement is essential, and the appropriate plan can help you achieve that goal. You can calculate your retirement income requirements with the help of the NewRetirement Planner. Alternately, research your options among 18 methods of generating income in retirement.
Spend Your Savings (Safely)!
You need a solid strategy to ensure your retirement assets survive, but many retirees today aren’t spending nearly what they should be, according to experts.
We need answers to a lot of things. The good news is that the Stanford Center on Longevity, in conjunction with the Society of Actuaries (SOA), has figured out a few things. After reviewing 292 plans for generating retirement income, they advocate for the “spend safely in retirement strategy.”
Keep on Budgeting
In retirement, you should make sure your savings will endure as long as you do. If your money situation isn’t great, budgeting is even more crucial because you can’t rely on next week’s income to cover any shortfalls.
According to certified financial planner Jon R. King of Austin, Texas’s Pegasus Financial Solutions, LLC, being willing to be flexible with spending is “absolutely crucial” both before and throughout retirement. The less you spend in the years leading up to retirement, the more money you’ll have for when you finally do retire, he says. If you want your money to last longer in retirement, you should reduce your expenditures.
Reduce your mortgage costs by the hundreds (while you still can)
We all know that interest rates are on the rise, but taking immediate action could save you money on your mortgage. Getting pre-approved for a mortgage with Better can take as little as three minutes.
When it comes to money, what do we save? In this example, we’ll pretend you refinance a 30-year fixed-rate loan from 4% to 3%. You can save $279 each month, or $3,348 per year, on a loan of $500,000.
You can put that money toward retirement, a long-awaited trip, or some much-needed home repairs. The infinite potential exists.
It would be foolish not to at least explore if you can save money by refinancing at these historically low-interest rates. Also, Better has shortened their online application process so that you can get pre-approved in three minutes and close up to ten days sooner than usual. On top of that, they provide round-the-clock service and never charge you a dime to use their services.