Clint P. Thomas, MSF, CFP® | Justina R. Welch, MBA, CFP®
If you are in your fifties, chances are you’re probably thinking about retirement. You have a decade or so to prepare, but time flies and it’s easy to let the routine of life get in the way of planning for your future. Taking steps now will help ensure you experience the retirement you want.
Think about what you want your retirement to look like
The first step is to envision what you want your retirement to look like. Do you want to be able to travel to all the places you haven’t been able to visit while you’ve been working? Maybe you want to take up a new hobby that you haven’t previously had time for? Perhaps you want to be able to maintain your current lifestyle but stop working.
Visualizing what you want your retirement to look like will help determine the amount of money needed to accomplish your goals, allowing you to start proactively planning now.
Work with a financial planner to create your financial roadmap
Take for example, when you are planning a road trip – you know your destination but if you don’t have a plan on how to get there, you can easily get thrown off track or get lost. With a roadmap, you chart a course that is fastest and most efficient way to get there with the resources you have available. There will likely be changes and detours along the way but a road map helps you see where you are and remain on track.
When you work with us, one of the first things we do is assist in determining your destination(s) such as retirement, which helps create your custom financial roadmap. Considering the progress, you have made so far, we help analyze and project what else needs to be accomplished to reach your goals. Taking many factors into account, such as current investments, future savings, income, and expenses – we can project if your assets and resources will sustain you throughout retirement.
Just like there are multiple routes that can be taken on a road trip, there are also multiple scenarios that can be illustrated. For example, one scenario can show what your financial future may look like if you continue earning and saving the same amount that you are now. Another may illustrate what your financial picture will look like if you save more each year or spend less in retirement.
If you haven’t already, by creating your roadmap now you will get a clear picture of what your financial future may look like based on your decisions today. That clarity will help you act now to plan for a successful retirement in the future.
Make a strategic plan for a successful retirement
If your planning indicates that you are not on track to meet your goals, consider these ideas to increase the likelihood of your reaching your destination.
Save
This may not sound all that new and original, but one of the most important things you can do right now to set yourself up for retirement is to save more money. There are many ways to do this, and you may even enjoy some of them!
- Evaluate your lifestyle and spending habits
The first thing you can do to save is to look at your lifestyle and see where you can start saving more money. There are free online tools available to help give you a snapshot of where your money is going.
Think about what is a need versus a want. For example, you may love dining out, but going to the hot new restaurant in town is probably not a need. Instead of going out to eat every night, cook at home more. Take what you have saved and increase your 401k contribution or save in a Roth IRA.
Think about other ways you can save money, as well. Consider driving your car one more year or exploring US historical landmarks versus a European vacation. For home improvement projects, instead of hiring an expensive contractor, take a class at your local hardware store and learn how to do it yourself.
Remember, every dollar you save now will bring you closer to having the retirement of your dreams later.
- Work longer or find part time work.
If you’ve been thinking about retiring early but it looks like you won’t have enough money to retire by that point, consider prolonging the length of time you work or working part-time in retirement. Many of our clients have found fulfillment and have stayed mentally engaged by working in retirement.
Do you have any longstanding hobbies that you can transform into post-retirement work? If you love books, maybe you can find work at a local bookstore. Do you enjoy gardening? Work at a nursery to earn some extra money. Take this as an opportunity to do more of what you love and to boost your retirement fund at the same time.
- Change your housing situation
Typically, the greatest cost you have is your housing. You may have purchased your home when you had kids in your house. Now that they’ve moved out, consider moving to a smaller home. It may be less space, but less cost, as well.
Do you want to move closer to family just in case you need their help or they need yours? Many people in their fifties move closer to their children and grandchildren. In some cases, they find more affordable housing and often connect more with their families, as well.
Make a plan for where your money will go
Are you ready for retirement? Contact us today to set up an appointment so that we can help you achieve your retirement goals.
