3 Easy Steps to Financially Prepare for Retirement
Preparing for retirement can be like getting ready for a storm. You want all your bases covered, but you aren’t always sure how. The most common fear of pre-retirees and retirees is running out of money. Because most of us are living longer, there are more years to enjoy, and more years of expenses. Fear not—there are several potential ways to prevent this from happening. The most efficient and reliable way is preparing early. Beginning your retirement financial preparation can be as easy as 1-2-3.
Step 1: Create a Retirement Budget
First things first, figure out your budget. You can do this by adding up your necessary expenses such as a mortgage, car payments, insurance, bills, groceries, etc. Then, consider what can be reduced or removed in retirement—maybe you won’t need two cars, or you’ll be able to garden yourself. If nothing can be removed, you have your fixed expenses. Add estimated healthcare costs and any optional expenses. Compare this amount with your savings. If you need more money, start thinking about how you’ll receive it. Do you have passive income? Will you need a part-time job? Can you contribute more now? Are there strategies to stretch your savings?
Step 2: Build Emergency Savings
Your retirement savings is meant for your every day and expected expenses. We hope to have extra cushion for emergencies, make sure to plan as if we do not. Creating an emergency savings early can allow it to grow at a slower pace if you can’t commit to large amounts. This method can also help you develop a large savings as your finances expand and complicate. No matter what, an emergency savings is a must when preparing for retirement because of the lack of stability.
Step 3: Meet A Financial Consultant for Retirement Planning
No matter your situation, a meeting with a financial professional can help. Planning for retirement should be a top concern once you start working, but it’s especially important the closer you are to retirement. Why? Because time is a very valuable asset. The more time available the more you could be accumulating. However, no matter your age, a financial consultant can help you design your unique retirement plan. They should account your goals, current and future financial situations, lifestyle, and needs when crafting your plan. The professional knowledge and advice from a financial consultant can help change your retirement savings for the better because they’ll have the inside scoop and tips. Before deciding on an advisor, make sure you’re asking the right questions. Click here for smart questions you can ask! (insert: https://ronaldgelok.com/smart-questions-to-ask-your-potential-financial-advisor/)
You’ve stepped into the fog that is retirement planning. Don’t worry, things should become clearer as you move along. Active planning and experience will bring you closer to the finish line of a well-thought-out retirement plan. While there are many things to prepare for when retiring, finance is the backbone of it all. These three steps will kickstart your preparation for retirement savings.
Need a financial consultant? Let’s schedule a time to chat about your portfolio and goals so we can potentially help fill in the gap. At RGA we approach retirement planning holistically with our diverse staff of financial planners, consultants, tax specialist, attorneys, and more! RGA can meet all your retirement planning needs so you don’t have to bounce around town figuring it out alone. Call 1-800-467-8152 or email firstname.lastname@example.org to schedule a time to chat.