5 Tips To Prepare For Retirementby Ari Taublieb
You've been working hard for years, and it's time to retire. It's not just about putting your feet up: You also need to plan for how you'll live after retirement so that you can make the most of this opportunity. It can be daunting to think about what you want in terms of retirement—and how much money you'll need to achieve it. If you're still working, there are some steps you can take now to help ensure that a comfortable post-work life is within reach. Here are five tips that will put you on track toward an enjoyable future:
What are you planning to do in retirement?
The first step to planning for retirement is to figure out what you want to do. For many people, this means figuring out how much time they have left on earth and what they want to spend that time doing. Some people may just want to relax and enjoy the fruits of their labor while others might be looking forward to traveling or volunteering in their community. It's important to ask yourself:
- What do I want my life to look like when I'm retired?
- How am I going to spend my time? This can include activities like reading, playing with my grandchildren or watching TV.
- What will be different about the way we spend our money?
The next step is making sure that you have a plan to pay for those activities. For example, if you want to travel while retired, how much money will it cost each year? What are the things I need to do today in order to make sure tomorrow's expenses are covered?
What assets do you have to make your retirement financially secure?
To ensure that you have enough to live comfortably in retirement, it's important to know how much of your financial assets are going toward retirement. What are the things I need to do today in order to make sure tomorrow's expenses are covered?
The first step is calculating how much money you've saved up so far. Then, determine how much you’re going to need in the future. For example, if you want to spend $100,000 in retirement every year, that’s wonderful! Is this coming from a pension? Are taxes taken out? Is this number adjusted for inflation? Once you know how much you want to spend, you may consider speaking with a financial planner to optimize your income.
Once this is done, it's time to figure out whether or not these funds are enough for what they're being used for—or whether there are other things that could be done with them as well! If they aren't quite sufficient yet then maybe consider increasing the amount by investing more money somewhere else; perhaps into real estate? Or maybe even buy some stocks? The possibilities are endless!
What are your tradeoffs?
The tradeoffs you make are about the choices you make, priorities you set and sacrifices you're willing to make. For example:
- Tradeoffs can be made in terms of time spent working or leisure time spent with family and friends. Some people prefer to spend more time with their families while others prefer spending more time at work or pursuing their hobbies.
- If someone has multiple jobs, they may need to choose between taking on new responsibilities at one job versus another job that requires less responsibility but pays more money (e.g., a teacher who wants higher wages).
It is important to note that not all tradeoffs are equal. Some tradeoffs involve giving up one thing for another while others require keeping both things.
You may want to consider what tradeoffs you're willing to make in order to achieve your goal. One way of doing this is by looking at all possible scenarios and deciding which one you would prefer most.
What about work alternatives?
You might be wondering, “What if I don’t want to retire? What if I am not ready yet?” In that case, there are plenty of other options.
Retire from your current job. If you’re not happy in your current position, there are many ways to find a new career that will make you happier. You can start a business, pursue an interest or hobby (or even go on a mini-retirement), or simply retire from your job and find something else that interests you.
Start a new business. If working for someone else isn’t for you anymore but entrepreneurship isn’t quite in the cards because it doesn't seem like something that would work out financially well enough yet (or at all!), then consider starting up an online business instead!
What's your ultimate retirement goal?
Your ultimate retirement goal is to have the freedom to do what you want. You may choose to do something completely new, travel the world, or simply enjoy your time with family and friends. People don’t want to save on taxes or invest better for the sake of it - but to enhance their quality of life. Whatever it is that makes you happy, this is what will help you achieve your dream of retiring early.
If there are any specific things that make up this dream, then write them down in a journal or notepad. It will help us remind how far we've come since starting our journey toward early retirement!
Now that you have a better idea of what to expect in retirement, your next step is to figure out how much money you need and prioritize where you should spend it. Working with a financial planner can help you get on the right track. If all goes according to plan, retirement could be one of the best years of your life!
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I am Ari Taublieb and I help people achieve financial freedom through early retirement. As a Financial Planning Specialist, I help my clients map out a realistic personal financial plan for maximizing their present lifestyle and optimizing future retirement years.