Retirement|Fun Or Fear?

You’ve done it, you have turned in your security badge, cleaned out your desk and received your gold watch.  You are now officially retired!!!  Let the fun begin, or is this when the fear starts?   It can be a bit of both.    Retirement brings out mixed emotions in people.

Even though retirement is designed to be fun and relaxing, it can be frightening and overwhelming.   You are relieved that you no longer have to punch a clock and be responsible for the work load; at the same time you may be worried about money issues.

Retirement Survival|Financial Survival

Avoid Money Paralysis

The fear of outliving ones income is the number one fear most retirees have when they first retire.  When you hit retirement age, you want guaranteed retirement income.  You do not want to be worried about where your next meal is coming from.    You want your money to last as long as you do.

The only way to overcome a fear is to confront it.   Make a list of your financial fears and address them one by one.   Here are the 3 most common money fears retirees have, you may have some of the same concerns.

  • Did you save enough money?

Even though you are retired, it is not too late to reevaluate your financial situation.   By using a retirement calculator you can determine if you have enough money or not.

Retirement calculators are designed to determine the amount of money needed to finance your retirement years.    When you are already retired, retirement calculators can be used to determine if you need to adjust your finances so as to not run out of money.

You probably addressed the money issue long before you even considered retiring.   Just to be certain you made the right decision about retirement, you may consider seeking the advice of a financial planner; they can help put your mind at ease.

  • Will your retirement investments shrink?

Retirement dreamsWhat will you do if an economic collapse completely shrinks your retirement investments?    It may be too late to repair your portfolio after the damage, so be proactive and take steps ahead of time to prevent investment shrinkage.

When you are at retirement age all you want is a guaranteed retirement income and investments with little volatility but also some liquidity.   Immediate annuities can help ease some of the anxiety caused by negative market conditions.

Annuities protect your retirement income by providing a guaranteed stream of income.   A financial planner or your insurance agent can give you more personalized financial direction and determine if annuities are a fit for you.

  • Will you outlive your retirement income?

One of the best ways to make your money last as long as you do is to avoid risky investments and avoid debt.

Risky investments may not rebound in the time frame you need.  When you are living off your investments vs a paycheck, you cannot afford to wait for a market rebound.

Debt is a waste of money, debt robs you.   The interest and fees that you pay on credit card debt and loans can double the original purchase price of your items.    If you are fearful of outliving your retirement income, the last thing you want to do is waste your money on interest and fees.

The Best|The Worst

Retirement can be the best of times or the worst of times.   If you enter retirement financially unprepared, you will have a difficult time.  If you are not financially ready, hold off on your retirement date.   Review your finances; use a retirement calculator; evaluate and reevaluate your retirement investments before you accept your last paycheck.