You're Almost There! 3 Simple Tips to Having the Retirement You've Always Wanted
After many years, you’re finally prepared for retirement (or at least you think you are). While it should be smooth sailing from here, it’s always worth taking a second look to ensure you’re making all the right decisions to reach your financial goals and live the life you’ve planned for. Here are 3 things to consider as you approach retirement.
1. Determine Your Expenses
Working less means more free time, which you may want to fill with costly activities such as traveling. A great first step to ensuring you keep your finances in order and don't burn through your funds too quickly is to determine your retirement expenses. This helpful article from The Balance can help you estimate how much you’ll spend each year, and help set a baseline from which you can plan. 1
2. Take A Second Look At Your Portfolio
As your lifestyle changes, so too should your portfolio. As you get closer to retirement, consider a more conservative investment strategy that will expose your funds to less risk. According to Kiplinger, as long as you haven’t neglected your financial goals and investments, your portfolio shouldn’t require drastic revamping. 2
3. Afford Yourself Flexibility
You may be in the position to have several sources of income during your retirement. One option to consider is to contribute to both a 401(k) and an IRA. This will grant you some planning flexibility in retirement and give you more options when drawing money.
How much do you need to save for your retirement?
By answering a few simple questions, this tool can help you evaluate factors that you can change, and ones that are beyond your control, for a complete picture of your what your retirement might look like.
This article is not an endorsement of any particular product, service or organization; nor is it intended to provide financial, tax or legal advice. It is intended to promote awareness and is for educational purposes only.
1 Source: The Balance. How to Estimate Your Retirement Expenses. Dana Anspach. July 19, 2016.
2 Source: Kiplinger. How to Invest After You Retire. Kathy Kristof. February, 2015.