You’ve put in a lot of effort over the years to get to where you are now. It’s now time to start thinking about the next major thing: retirement. Before you say goodbye to the 9-to-5, there are four things you should do.
Retirement is your time to be you, without the stress of a full-time job, whether it’s traveling, pursuing a lifetime hobby, or simply sitting back and relaxing. But one thing is certain: long before you call it quits, you must plan and save like you’ve never planned before. What is your most difficult challenge? To ensure that you will have enough money for the remainder of your life to do the activities that bring you joy and contentment.
Here are some things you can do right now to assist you get through your golden years.
1. Don’t let home repairs drain your bank account
Repairing a house isn’t inexpensive. Your home may rapidly become a nightmare, costing you hundreds or even thousands of dollars to fix, whether it’s a leaking roof or a malfunctioning appliance.
You do not, however, need to be concerned. Fortunately, you may protect yourself from large repair fees by purchasing a home warranty from America’s 1st Choice Home Club. Everything can be safeguarded, from home appliances to electrical, plumbing, heating, and cooling systems.
Furthermore, their in-house service team is ready 24 hours a day, 7 days a week to assist and ensure a smooth repair process if something goes wrong. You can even pick your own technician or have one sent to you from their nationwide network if you don’t have one in mind.
AFC Home Club is a popular choice among homeowners in the United States because of the discounts, service, and piece of mind it provides.
2. Think Income Not Investments
Nobel Laureate Robert Merton believes that estimating and planning for your retirement income needs is more important than worrying about investments and how much money you’ll need in retirement. He suggests categorizing your revenue requirements into three categories:
Minimum guaranteed retirement income – This is the amount of money you’ll need to live comfortably in retirement. Your retirement assets should be allocated in such a way that this income is guaranteed for the rest of your life. Two common guaranteed income sources are Social Security and lifetime annuities.
Flexible income – This category refers to how much money you need to live the lifestyle you want. This category’s income should be derived from carefully invested assets.
Nice to haves – With investments in this area, you can take some chances.
The greatest retirement strategy ensures that you will have adequate money to cover your costs in retirement. The NewRetirement Planner can assist you in determining how much money you’ll need in retirement. Alternatively, have a look at these 18 retirement income alternatives.
3. Spend Your Savings (Safely)!
You’ll want to have a strategy in place to ensure that your funds last, but experts say that many retirees today are just not spending enough.
There are a lot of them. Good news: the Stanford Center on Longevity has some answers, thanks to a collaboration with the Society of Actuaries (SOA). They looked over 292 senior income plans and concluded that the best approach to spend in retirement is to “spend safely in retirement.”
4. Don’t Stop Budgeting
You’ll want to make sure that your retirement assets last as long as you need them if you’ve saved wisely. It’s much more vital to budget if your finances aren’t in great shape, because you won’t have next week’s income to make up for financial missteps.
According to Jon R. King, a certified financial planner with Austin, Texas-based Pegasus Financial Solutions, LLC, the ability to be flexible with spending is “very crucial” both before and throughout retirement. “It’s crucial to spend before retirement because the less you spend, the more you save,” he explains. “When you cut back on your expenditures after retirement, [your money] lasts longer.”
5. Save thousands on your mortgage (while you still can)
It’s no secret that interest rates are rising, but if you act soon, you can still cut your mortgage payments. Better is a mortgage lender that can get you pre-approved in as little as three minutes.
And what about the savings? Let’s imagine you want to refinance a 30-year fixed-rate loan from 4% to 3%. You’ll save $279 each month on a $500,000 loan, or $3,348 per year!
That’s money you may set up for retirement, a dream vacation, or even house improvements. The options are limitless.
With rates this low, you’d be stupid not to look into refinancing to see how much money you may save. Furthermore, Better has streamlined the entire application process online, allowing you to get pre-approved in as little as three minutes and close up to ten days faster than the industry average. There are also no commissions or loan costs, and they provide 24/7 help to ensure that everything runs well.