Will 2020 be the year? If so, congratulations are in order! You are about to embark on an exciting and rewarding chapter of your life – one you've been working toward, intentionally or not, for decades. Whether your plan is to retire cold-turkey or transition more slowly, there are a few things to keep in mind that will help make the process easier, less stressful, and, ultimately, more enjoyable.
Arguably the most important step is to just start! Many people put off thinking about retirement because of a fear or uncertainty about whether they will have enough money to fund their goals. In this instance, there truly is no time like the present. Be wise enough to start planning your journey right now and think of ways you can secure your finances to avoid or mitigate potential challenges along your way.
Know Your Income
Add up the amounts you can expect to receive from both stable sources (e.g., pensions, Social Security income) and flexible ones (e.g., savings and investments). Unsure of how much you can expect to draw from your savings and investments? Set up a consultation with your investment advisor for guidance.
Make a Budget
Household expenses often change with retirement. Such changes may come in the form of reduced spending on things like dry cleaning, work clothing, travel costs, and membership fees, or increased spending on vacations, hobbies, healthcare, and the like. Planning your retirement budget ahead of time will help to ensure that you are ready for these changes.
Do a Test Run!
Want to see how it all works together? Ask your financial advisor about putting together a plan that takes into account your various sources of retirement income, anticipated monthly expenses, and bigger-picture goals like travel, gifting, downsizing, remodeling, and more. Don’t have an advisor, or want a second opinion? State Bank of Cross Plains provides standalone fee-based financial planning services that provide you insight into how your finances might look during retirement, and how changes might impact your plan.
In the context of retirement, I can’t say it enough … start now! Whatever your financial situation, it’s important to know that your retirement income, savings, and investment resources are compatible with your dreams and goals. If you are concerned about weaknesses in your plan or are wondering if you have enough to retire ahead of schedule, solid guidance from a trusted expert can make a huge difference.
If you have questions or would like more information, please feel welcome to contact me directly at (608) 826-3503 or email@example.com.