Do you know how much money you’ll need to live comfortably during retirement? A recent article in USA Today states that 8 in 10 Americans have no idea how much they should be saving for when they leave the workforce.
Eric Kearney, an investment advisor for Retirement Wealth, says retiring on time requires that people start planning far in advance. Here are 5 tips people can take to make sure they’re ready for their golden years.
- Plan your lifestyle. Before you begin the process of financially planning for retirement, you may want to think about what you want to actually do during retirement. Will you stop working entirely, or collect a paycheck part-time? Leaving the workforce behind for good can be problematic in the event that you run out of income. If you outlive your cash in the end stages of life the consequences can be stressful. This is especially true if you’re physically unable to re-enter the workforce.
- Adjust your lifestyle now. Changing your lifestyle helps you in two ways. First, you’ll save and invest more money now, so that you can live more comfortably in the future. Two, you’ll be more used to living on a scaled back income when you do quit work.
- Open a retirement fund. The time to start saving is a decade or two before retiring. Too many people wait until it’s too late. Investing early will help you build a larger nest egg. That means you can contribute less overall and gain more.
- Avoid debt. This is a good tip at any age, but when you are thinking about retiring it is even more important. When you do take on debt, make sure to try and pay it off as fast as possible. Think about maintaining a well-funded savings account to help you pay off any unexpected expenses that do come up.
- Envision your future. It can be challenging to stay financially on track. However, if you want to have a dream retirement, you need to start saving now. Envisioning what those years will look like can help you avoid the temptation to spend.
About Eric Kearney:
Eric Kearney (www.erickearneyadvisor.com) of Retirement Wealth, with Florida offices in Cape Coral, Punta Gorda and Bonita Springs, has been helping clients reach and maintain their financial goals for more than 16 years. Eric co-authored a book with Forbes Media Chairman/Editor-in-Chief Steve Forbes, Successonomics. His professional licenses include a Series 65, Series 7 Securities License and a Life and Health Insurance License. He teaches pre- and post-retirees a wealth management course titled “Rejuvenate Your Retirement” at Florida SouthWestern State College and Florida Gulf Coast University.