Retirement Archives - Page 2 of 2

It feels like it’s the era will never come but trust us, it does. And it comes with a bang.

Today is all about retirement and ultimately, how you can plan for it better. We have collected several resources to help you along your way and hopefully, they give you some food for thought for this elusive era.

Where should you be living?

First and foremost, this link doesn’t necessarily state where YOU should be living – but it provides some interesting insight into where most seniors do reside in the United States.

Spoiler alert, it’s Florida. That’s right, the Sunshine State has the most seniors based on all of the statistics that this particular website has used – whether it be the percentage of seniors or the average age of people living there.

As we all know, retirement villages have become much more popular over the years, so for those of you wishing to spend your advancing years with others of a similar age this infographic is a good place to start.

The signs you are not ready to retire

This next link has been put together by Investopedia, who have revealed nine signs you should be looking out for if you are considering retirement. Put simply, if you notice any of these red flags, it’s a sign that you’re not actually ready to take the plunge just yet.

We’re not going to completely give the game away, but some of the signs are current problems paying bills, and even loving your own job. Take a read and see if you satisfy any of the nine. If you do, it might be time to rethink your future plans.

The late-starter guide for retirement

Following on from the above, we’ve picked this link out from the Telegraph. If you happen to be edging towards your 60s, this is the resource for you.

Granted, if you have absolutely nothing in place, even this resource might not be able to help you. For those of you who have at least made a start, it does provide some good advice. For example, it will talk to you about rebalancing your portfolio and even what to watch out for in relation to rises and falls with currencies. Both of these issues can wreak havoc with a plan that’s been very well put together, so they are worth considering.

A quick point is that you do have to sign up to the Telegraph to read the full article, but their free registration shouldn’t hinder you.

Source: https://www.telegraph.co.uk/pensions-retirement/financial-planning/in-your-late-50s-or-early-60s-heres-your-perfect-financial-plan/

The retirement blind spots revealed

Next on the list is a link from CNBC, although it has been written on the back of a study from NerdWallet. That particular website ran a survey quizzing people on when they retired. The results were quite amazing, with most saying that they hit the button at 59. Suffice to say, this is significantly younger than most recommend.

As such, CNBC put this article together to talk about the possible blind spots if you do retire early. It’s a great starting resource for those of you considering retirement and thinking about the possible repercussions.

Source: https://www.cnbc.com/2020/01/07/the-retirement-savings-blind-spot-you-dont-realize-you-have.html

How will you spend your retirement?

A lot of the links we have featured today have studied the financials of the retirement – and rightly so. After all, understanding if you have enough money to survive once you leave the world of work is of paramount importance.

This final one takes a different look at the period. Instead, this is all about how you will spend it. At first, the thought of retirement might sound utterly appealing, but as soon as your routine is thrown out of the window you can be left scratching your head over what to do.

The Balance hasn’t necessarily signposted the things you should be doing, but they are instead asking you to just think a bit differently about how you will spend your retirement in a happy manner. It might be that you need some form of part-time work or volunteering, or you just need to get out and start exercising. Have a read and assess your own plans.

Source: https://www.thebalance.com/how-you-will-spend-your-retirement-2894357
[…]
Consider a Home-Based Job as You Approach Retirement
5 Great Games That Seniors Can Play Together (While Engaging Their Minds!)

Photo by Ana Francisconi from Pexels

Early retirement will take some planning — Photo by Ana Francisconi from Pexel

If you’re reading this article, you’ve woken up to the fact that trading the majority of your waking hours for money isn’t as fulfilling as the company you’re working for would have you believe. When you add up all the time you dedicate to work, including your commute, meal prepping, and the fact that your free time is sliced in half by the workday, it becomes clear just how much freedom we sacrifice for the money we need to survive.

As any SMSF accountants worth their fees will tell you, setting up a retirement plan that will allow you to make a smooth exit from this burdensome arrangement while you’re still young should be a top priority. Read on to learn just how to make your early retirement dream a reality.

1. Define what “early” means for you

The problem with words is that they’re so subjective. The age of 55 might feel like early retirement for your buddy, whereas anything over 40 might seem like an endless grinding nightmare to you.

To put things in perspective, statistics from the US Census Bureau show that the average retirement age is just shy of 60 (though the most common age to retire is 62). While this figure has dropped slightly in recent years, the sad fact is that most millennials aren’t saving enough even to reach this horizon. In fact, most Americans in their 30s have less than half the amount saved that will allow them to retire in their 60s.

So, based on your current age and life goals, you need to start by deciding what “early” means for you. Only then can you figure out what changes you need to make and how drastic they need to be.

2. Get calculating

Once you have your desired end date set, you have the parameters to calculate your path to getting there. This is where your accounting and math skills come in. If the idea of figuring out all the details doesn’t get you excited, consider enlisting the help of a friend, accountant, or financial planner who can keep you motivated and aid you in making everything clear.

While it’s up to you to work out your income, expenditures, and projections for the years to come, we can give you a bit of an outline to work with: your early exit from the workforce becomes a distinct possibility once you’ve got around 25 to 30 times your yearly expenses safely squared away in your retirement fund.

3. Take action: saving and expense shaving

Once you’ve done the math, you’ll know exactly how much you need to be saving each week, month, and year to reach your goal. If your current financial situation sees you greatly off-track, don’t despair. This is a blessing in disguise because now you know exactly where you stand, and knowledge is power.

Whatever the gap is between what you can currently save and what you need to be saving, it’s time to get creative and resourceful in filling it. This can come in the form of starting a side hustle, putting in the upfront work in to establish passive income streams, educating yourself and diving into the world of investment, cutting back on expenses, or any number of other tactics. Get researching and find some money-making strategies that work for you.

While these steps are your foundation for getting there, early retirement will take a lot of dedication. But the good news is, every dollar earned and saved is another step closer to the freedom you crave.
Related Family Planning:
Making Financial Freedom an Attainable Resolution for 2019
When Is The Right Time To Plan For Retirement
Senior Living Facilities Explained