Your Retirement Begins With This Check List
1) How Much Money Will You Need To Afford Retirement?
It all depends on your retirement goals? After you determine what you want to do during your retirement years, use a retirement calculator to narrow down the amount of money you will need to accumulate to afford retirement.
2) What Will Your Sources Of Retirement Income Be?
Social security may or may not be a reliable source of retirement income. Your personal investments and retirement plans are more reliable.
3) What About Expenses?
At the very minimum you will have expenses for insurances, taxes, health care, long-term care and whatever money is needed for your passions (travel, gardening, hobbies, etc).
4) Will You Have A Financial Gap?
You will only have a gap if you retire without having enough retirement income to last as long as you do. Avoid this gap by saving more during your working years or live your retirement years on a lower budget.
5) How Much Debt Will You Enter Retirement With?
Make it your #1 financial goal to enter retirement with zero financial baggage. Debt is financial baggage, it’s a curse.
6) How To Be Debt Free By Retirement?
- Change your financial habits.
- Invest more spend less.
- Live within your means; spend less than you earn.
- Paying off your mortgage before you retire is a basic retirement planning strategy. Your retirement income will go a lot further if you do not have a mortgage payment during your retirement years.
- Stop creating debt.
- Pay off all credit card debt before retirement. The fees and interest charged on credit cards is such a waste of money.
7) How To Pay Off Your Mortgage Before Retirement?
Paying off your mortgage early is not a difficult task, it just requires self-discipline. Make it a financial habit to pay a little extra every single month. It all adds up.
Skip coffee on the go or lunch out a few days a week and then take that money and make an extra mortgage payment.
Use your bonuses, tax refund checks and overtime pay to make an extra mortgage payment.
8) How Long Will You Live?
Who knows. People are living longer though, on average into their mid-eighties. And remember, your retirement income has to last as long as you do.
So Many Questions|So Little Time
You are allotted so many working years before you run out of energy, then you are supposed to transition into your retirement years.
The purpose of your working years is to save and invest enough money to stop working. If you do not use your working years wisely and save enough, you may be forced to extend those working years, much to your chagrin.
Take the time, make the effort, invest wisely.