First, we have to focus on the financial side of the equation. Without the financial foundation it will be very difficult to live any kind of satisfying retirement. Second, you have to give careful thought to your vision of happy retirement, which includes all the non-financial aspects as well.
Here are 10 important questions you need to answer to start your retirement planning:
1. Do you know how much money you will need to support your lifestyle in retirement?
How much money you are spending for your current lifestyle? That will give you a good idea how much money you will need to support your lifestyle in retirement. Honestly look at where your money is going. Look for the waste. Your estimate may be a little smaller which may help you identify the way to cut down current expenses.
You will be surprised that you may need more money in retirement than you thought you would. These tips can help you to adjust your retirement expenses:
2. How much do you need to save?
If you are already in your 50s, you really need to focus on your retirement planning. Here is what you need to do when you turn 50:
You also have to be very careful about your taxes in retirement. Learn about tax considerations in retirement: http://www.newyorklife.com/products/tax-considerations-in-retirement
3. Do you have a strategy for building your retirement assets?
You have to contact trusted financial professional to discuss about your asset building strategy. Everyone has a unique situation and there is no strategy that works for all.
4. Does your retirement plan include distribution and retirement cash flow strategy?
It is often too late to come up with your distribution strategy by the time you have reached your retirement age. Market volatility may have eaten away at some of the assets you were counting on. You have to have a distribution strategy while you are still accumulating retirement assets.
Here are some ideas for secure income during your retirement:
5. What are your 401(k) rollover options?
For most of us, 401(k) saving is one of our largest retirement assets. However, many people forget to decide what to do with them after they switch employers. Knowing all your options can make the difference between having a comfortable retirement and not having one at all. It is best to contact a financial professional who has expertise in this subject and can evaluate your need for the bigger picture of your entire retirement planning.
6. Would you like to continue working in some capacity?
Sometime people want to work after normal retirement age, and sometime they just have to. If you do, try to set up a second career before leaving your full time job.
7. Will you retire in your current location or move?
It is actually very important to identify what is important to you in a retirement location. Then research your retirement location candidates.
8. Do you have enough interests and hobbies to avoid driving your partner or spouse crazy?
This is actually a very serious question, and you may have to reevaluate your current lifestyle as well.
9. How will you deal with physical limitations in later years?
Since many retirees are expected to live beyond 80, long term care needs are a serious possibility. You must have some plan. Again, you have to contact financial professionals who can help you to prepare for this issue.
10. Did you find a financial professional with whom you can start the discussion about retirement planning?
Yes, there are so many things you need to think about. It may be much easier to do it with someone who knows a lot about retirement planning. It is never too early to start conversation with trusted financial professionals. Choose wisely. Choose someone who can find the right answers to all 10 questions.
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