Making Sure You Are Financially Ready To Retire
If you are close to retirement, you should have an idea about how much money you will be retiring with, as well as other financial information. However, you may still be concerned that you haven’t saved enough. Below is a checklist to make sure you are prepared for retirement.
- Know How Much You Have. If you are close to retirement, you should have a clear picture of how much you will have saved by retirement, as well as any sources of income. You can use tools online that can calculate for you how much you should have saved for retirement to make sure you are on track.
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- Start Downsizing Now. Many people decide to downsize and simplify their lives when they retire. However, you don’t have to wait until retirement to start the process. Think about what your life will look like in retirement. Are you going to move to a smaller residence or even to another state to save expenses? Do you want to travel? These are all considerations to think about as retirement approaches. If you know you are going to be downsizing, you can start early by selling or donating items and furniture or giving them to family members. Physically preparing your space will make retirement more of a reality for you.
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- Understand Your Health Needs. One of your biggest expenses, when you retire, will likely be healthcare. Before that date comes, you will want to start thinking about what your post-retirement healthcare plan and expected costs will be once you enter retirement. You should also take steps now to ensure you are in optimal health for retirement by checking with your doctor. Now is the time to make lifestyle changes to put you in the strongest physical condition to enjoy retirement.
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- Plan Your Budget. It is never too soon to start preparing a retirement budget. If you know what your fixed monthly income will be, you can start to calculate monthly expenses to see where you need to cut or where you have extra room for additional spending. If you are going to need to start cutting expenses in retirement, by starting before retirement, you will already be in an optimal position for retirement. You may also be able to increase your savings for retirement by cutting expenses early.
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