This is one reason why it’s vital to manage retirement planning with professional advice.
Retirement planning experts can help you interrogate your assumptions and make sure you are on the right track – not only in terms of how you plan to use your resources, but also how your decisions today will contribute to your lifestyle later.
It’s particularly crucial to keep these issues in mind:
1. Downsizing Your Home Can Be A Wise Decision
It’s often difficult to make the decision to downsize your home, particularly if it’s been in the family for a long time. But it can be worthwhile, especially during this major life transition.
Larger homes have a tendency to demand more time and money in maintenance. Plus, homes with stairs or old-fashioned bathrooms can present safety hazards as we grow older.
If you’ve worked to build equity in your home, then choosing to sell it can also add to your retirement income. Selecting a smaller home for your later years reduces your expenses and lets you put aside any additional revenue from the sale as a nest egg.
2. Plan Like You’ll Live To Be 100
It’s no secret: Every generation, life expectancy tends to increase. Better healthcare, nutrition, and lifestyle choices all contribute, but there’s an ineffable factor to it that no one can predict.
With this in mind, it’s always wise to assume that you’ll live longer than your own parents – and a good bit longer than you might have imagined when you were growing up.
In fact, it’s a good idea to plan as if you’ll live to be 100. This makes you more alert to opportunities to stretch your assets and live comfortably while still staying within your means.
If you don’t quite make a century, no harm done. If you do, wouldn’t you rather be prepared?
3. Don’t Forget to Revise Your Strategy
Planning for the future isn’t a “one-and-done” affair. Even with a robust, diverse portfolio, you should still update your plans every 3-5 years. This can keep you ahead of developments in the market so you can maintain the financial performance you expect.
4. Set Up a Budget and Stick to It
A clear budget is a good idea for anyone, but it becomes even more valuable over time. Sticking to a weekly budget will help give you much-needed influence over your financial future. On top of that, it can help you save for unexpected expenses, from medical care to vacations.
5. You’re Free – So Consider Moving
Post-retirement is the perfect time to move, and it can benefit your budget significantly if it’s a low-cost area. No matter where you decide to live out the golden years, you should also think about the logistics of family visits and amenities like restaurants, transportation, and healthcare.
The experts at BD Financial Concepts will help you architect a powerful, personalized approach to retirement savings. Contact us today.