Advertising
Advertising

How to Financially Plan for Your Retirement

How to Financially Plan for Your Retirement

retirement-plan-options1

    Even if you’re young, retirement will arrive faster than you expect. If you’re not in a career you love, you might even feel like retirement can’t arrive quickly enough. Even more concerning is the idea that if you’re not financially ready for retirement, you could spend your “golden years” struggling to stay afloat. Fortunately, there are ways you can more easily avoid that risk and financially plan for retirement. Here are five issues to consider when you’re making those retirement plans.

    1. Understand the Differences Between Savings and Income

    Having a savings account or other investment vehicle is a great idea. You want to have saved as much as possible before you retire, so you can be ready to stop working and enjoy whatever you have planned in your later years.

    Advertising

    Savings, though, is not the same as income. If you don’t still have any money coming in, your savings could eventually be depleted. Because you don’t want that worry hanging over you in older age, you need both savings and income.

    One way to generate more income for your retirement planning is by opening accounts that provide you with strong returns over time. Scottsdale Bullion and Coin suggests that you consider transforming part of your retirement investments into a tax-deferred asset through the creation of a precious metal IRA. Precious metals such as gold can increase in value at a much stronger rate than more traditional investment vehicles.

    2. Pay Off Debt

    Debt is a problem for most people, from early adulthood through middle age and beyond. However, when you go into your retirement years with debt, the struggle can become even more significant. Therefore, it’s very important to factor in a debt repayment plan before entering retirement.

    Advertising

    Cars, homes, student loans, credit cards, and other types of debt should all be paid off before your retirement date. Then, all you need to be concerned with in your later years are normal household bills, along with standard purchases and anything extra you want to spend money on (travel, family, etc.).

    3. Apply for Government Benefits

    It’s important to know what kinds of benefits you’ll be able to receive from the government in retirement. Social Security and Medicare may be very important to you, depending on what other income streams and insurance options you have. However, it’s often best to delay receiving Social Security, if possible.

    Those who put off drawing on their Social Security benefits will get more per month—all other things being equal—than those who claim it early. If you’ve successfully planned for retirement, you shouldn’t have to take your Social Security benefits too early.

    Advertising

    4. Budget for the Future

    The cost of long-term care is rising, and nearly 70 percent of people who live past the age of 65 will eventually need this type of care. Some will require it for a number of years. With that in mind, you should financially plan for retirement in a way that takes into account as many different scenarios as possible.

    Long-term care insurance can be a good choice for retirement planning. You can also consider investments that will pay strong dividends, as these can be used to pay for long-term care, as well. Assuming that you won’t need this type of care could leave you struggling in retirement, so it’s much better to plan for the possibility.

    5. Attend to Legal Matters – Insurance, Wills, Power of Attorney

    Getting your affairs in order is another excellent way to handle financial planning for retirement. Go through your will and make sure there aren’t changes you’ve put off making. Also, consider what kind of insurance policies you have, how much they’re for, and whom you have for beneficiaries.

    Advertising

    If you have a power of attorney (POA), make sure you’re comfortable with the person you’re giving control to. If you aren’t, or you don’t have a POA, now is the time to get one ready. The odds are that you’ll enjoy many happy years in retirement, but it’s better to take care of things sooner, rather than later.

    Attending to legal matters early will help ensure that your retirement will be comfortable, and that you won’t have to worry about money as you age. As you get closer to retirement, you can assess how much you’ll have in terms of savings and income. You can also take a look at your debt levels and see what you might need to change to pay off debt before you retire.

    No matter how young you are, it’s never too early to start planning for retirement. If you start budgeting and preparing now, you’ll be ready to live comfortably when you reach an age where you want to retire. Then, you can move confidently away from the workforce and into all the joy and adventure your later years will have to offer you.

    Featured photo credit: Skloff via skloff.com

    More by this author

    How to Financially Plan for Your Retirement 5 Lifehacks to Increase Activity in Your Job Make Your Family Vacation Cheap And Fun In A Way Most People Don’t Know 5 Tips to Help You Choose the Right Medical Career Path Simple Yet Effective Life Hacks to Make Your Lifestyle More Active

    Trending in Money

    130 Fun Things You Can Do This Summer Without Spending Much 235 Real Ways to Actually Make Money Online 3How to Make Money with a Blog (According to 23 Successful Bloggers) 4This List of 50 Low-cost Hobbies Will Excite You 530 Fun Things To Do With Your Friends Without Spending Much

    Read Next

    Advertising
    Advertising

    Last Updated on August 15, 2018

    30 Fun Things You Can Do This Summer Without Spending Much

    30 Fun Things You Can Do This Summer Without Spending Much

    Summertime can be a real strain on your wallet. The sun is out, there are people to see, places to be; it’s no wonder you might be short of funds during these sunny months. Not everything has to cost you an arm and a leg.

    Take some time to go through this list of 20 cheap summer activities and make some realistic goals to complete as many as you can.

    Video Summary

    1. Visit a strawberry festival

    Summer is prime time for tasting strawberries. More often than not, an area that grows strawberries will have a strawberry festival. Indulge yourself in strawberry pies, jams, cakes and more!

    2. Have a picnic

    Take your partner or your family to the local park and enjoy a relaxing picnic. Designate each person to bring one food item of their choice to add to the fun.

    3. Camp in your back yard

      The summer heat can sometimes make it hard to sleep. Why not enjoy the heat outside in the yard? Pitch a tent or gaze into the night sky.

      4. Take long walks

      Discover something new where you live. Take the afternoon off from your chores and go for a long walk. You may be surprised by what you discover.

      5. Break a world record

      Breaking a world record doesn’t have to be time-consuming. You could even break one on your lunch hour. Give it a go!

      Advertising

      6. Go on a bike ride

      The number of bike paths on roads in big cities has increased dramatically over the years. Take advantage, and enjoy the summer breeze.

      7. Join a gym class

        The gym is not everyone’s idea of a good time, but why not go with a friend a join a class? Spinning, yoga and step classes are always more fun with friends, and a lot of gyms allow you to pay-as-you-go.

        8. Find a new hobby

        The summer is the perfect time to find a new hobby. Serotonin (our body’s natural “happy” hormone) is produced by the sunshine and will be at a yearly high, which is great for when we want to tackle something new.

        9. Join a sports team

        Not all sports teams are competitive and require huge amounts of your time. Join in the fun with like-minded people, get fit, stay healthy and make some friends along the way.

        10. Make a slip ‘n slide

          Gather your friends, some plastic sheeting, a hose, washing up liquid if desired, and make a huge slip ‘n slide just like these guys. Granted, yours won’t be as big, but you get the idea… it’s fun!

          11. Make a treasure hunt for your kids

          Today’s digital world sees our children more often than not playing inside than outside. Why not create a sense of adventure by making a treasure hunt? Only rule? It has to be outside.

          Advertising

          12. Visit a free festival

          Towns and cities are awash with free festivals, with themes from film to science. Scout your local area and discover something new.

          13. Visit the zoo

            Let’s face it: we love animals. While browsing news websites and social media networks you’re bound to come across a few pictures of cats. Take a trip to your local zoo for a better experience.

            14. Take a road trip

            Enjoy the open road with a few friends and take a road trip somewhere–anywhere. Just go out and enjoy the sunshine!

            15. Play ultimate frisbee in the park

              Frisbee is always great fun down the park, but why not turn it into more of a competitive sport by playing ultimate frisbee?

              16. Make your own ice cream

              Ice cream is a very versatile dessert. Make a sandwich, enjoy a cone, or simply just enjoy a bowl full. Better yet, making your own ice cream allows you to create any flavor you want.

              17. Invite your neighbors over for a BBQ

              Advertising

                When was the last time you invited your neighbors over? Do you even know them? Now’s your chance. Just ask each person to bring a food item so costs don’t mount up for you.

                18. Get a summer job

                For many students, summer is the time for relaxation and fun. But who said earning money and being productive isn’t fun? You only get out what you put into a situation.

                19. Attend a charity event

                Attending a charity event is a great way to raise funds and awareness for a cause, meet new people, and generally have a good time. Search for your local charity event today.

                20. Visit a national park

                National parks are a great way to explore nature and learn something new. You could even volunteer and make a difference in helping restore natural habitats.

                21. Visit your local comedy club

                  Local comedy clubs are extremely underrated. They are cheap to attend and no doubt you’ll have a barrel of laughs.

                  22. Make your own hammock

                    Hammocks are very relaxing, are perfect for summer afternoons and are surprisingly easy to make.

                    Advertising

                    23. Read in your new hammock

                    Now you have your very own hammock, the only thing left to do is enjoy it. Grab your favorite book and read to your heart’s content.

                    24. Watch a movie outside

                    Movies are great. Relaxing outside in the evening is great. Put them together and you’ve got a perfect combination. In D.C, Maryland and Virginia this summer, for example, you can enjoy a huge number of movies outside.

                    25. Take a hike

                      Hikes are a great way to keep fit and see more of Mother Nature. There are countless trails available for you to explore. Why not try some this summer?

                      26. Learn how to fly a kite

                      As a child, you probably had a kite and haven’t touched it since. Why not dust it off and attempt to fly it? It’s tricky, but well worth the challenge.

                      27. Work out at the park

                      American cities are full of parks with ample space for a work out session. No doubt you’ll be happier to work out in the sun rather than a crowded gym.

                      28. Take your dog to the beach

                        One of the many joys of owning a dog is taking him or her for long walks during the summertime. This joy is enhanced when visiting the beach, for both you and your dog.

                        29. Make a summer smoothie

                        Healthy, delicious and perfect for the summer. Not only that, there are countless recipes ready for you to try.

                        30. Attend a free yoga session at the beach

                        No experience needed and all skill levels are welcome. Take yourself and a buddy down to the beach and try some yoga. You’ve got nothing to lose!

                        Read Next