Focused Retirement Training
When young lads train to be Boy Scouts they are taught to “always be ready”. Retirement training is very similar to Boy Scout training. One is wilderness training the other is financial training; both require you to “always be ready”.
When you are a Boy Scout a stick and a rock can get help you maneuver most situations. To survive retirement you will need more than a stick and a rock, you will need enough money. You can plan for your basic money needs but you will need to be ready for those unexpected, unplanned for expenses.
1 – Fight Back Inflation
Inflation has a sneaky way of eroding your hard-earned retirement savings. You do not control inflation or the eroding effect it has on your purchasing power. But you do control how much money you put away for your retirement.
2 – Build A Financial Cushion
Unexpected expenses can surprise you. To offset the unexpected build a bigger nest egg than your calculations tell you. You have no control over the cost of living but you do control how much of a cushion you enter retirement with. A good financial cushion will ease your worries about running out of money.
3 – Bye-Bye Debt
If you enter retirement with no debt, managing your unexpected retirement expenses will be easier. Debt free living is stress free living.
4 – Switch Gears
Balance our your risk. If you invest too much in bonds your purchasing power shrinks. A portfolio too heavily weighed in stocks could decrease the value of your portfolio when you need the money most. Finding a balance will have you ready for unexpected market fluctuations.
5 – Learn To Live On Less
If you practice living on less during your working years you should be able to do the same when you retire. When folks retire they make the mistake of thinking they can enjoy the same financial lifestyle they did during their working years.
When you retire you will not have a regular paycheck; your investments will be the only income supporting you. If the income flow from those investments cannot support you then you will be forced to live on less.
6 – Save Money With A Downsize
Your home’s market value may have not rebounded yet from the latest economic downturn but you may still consider downsizing. By moving to a smaller home you will save money on taxes, utilities and insurance. You can then reinvest the money you saved into your retirement accounts.