If you’ve been following the Retirement You Earned Blog, then by now you probably know the ins and outs of saving for retirement: the types of IRAs, how to form a strong investment portfolio, and how to make the most of employer-matched 401(k)s. However, it’s likely that you—much like many other responsible savers—may find yourself at a loss when it comes to living your best life in retirement. After all, daily routine tasks and upkeep aren’t stressed nearly so much as IRAs are. Don’t worry though—the hard part is almost over. Soon, you can get started enjoying yourself!
- Be vigilant against inflation. Inflation can devalue your money’s worth over time. You should always keep this phenomenon in mind as you’re saving, as what you have in the bank now may not have the same spending power when you’re older. For example, $1 in 1913 had the same buying power as $25.71 has now. To put this into perspective for your retirement, let’s say you have saved about $738,000 for your nest egg. In 1913, $28,700 had the exact same buying power. Make sure that you discuss this with experts when you’re building your savings and portfolio so that you don’t come up short!
- Create and maintain a spending plan. A good rule of thumb is to give yourself a yearly budget, which you can also think of as your paycheck. This paycheck may be supplemented by new cash flow, like Social Security, or it may be an amalgamation of your savings. Carefully craft a budget based on rent or house payments, utilities, food, and other expenses. It’s best to also continually check on your budget—are you following it? Is it too high? How long will your savings last at that rate? It’s better to catch a problem early, which will minimize the damage. Finally, don’t be afraid to reassess your spending plan or ask for more qualified help. No one is born a financial whiz! Besides, we all need a bit of outside perspective or knowledge when it comes to a subject as important as retirement!
- Handle your income. As mentioned before, you may receive income from Social Security or Disability. Research the best time for you to start withdrawing your Social Security. If you can afford to wait a bit longer, this will help your long-term income become more profitable. Additionally, your IRA will most likely give you cash flow, so don’t forget to make all the big calculations before withdrawing. Ultimately, this will help you remain on track as you’re living your best life in retirement.
- Make long-term plans. If you or your spouse is still in great physical health, you may not be able to imagine leaving your two-story family home. However, in 10 years, that could prove disastrous, even resulting in serious injury and thousands of dollars in medical bills. Consider moving or downsizing before disaster! It will be much easier on you that way, and you’ll have much more time to fall in love with your new home.
- Include your partner. If you have a partner, then you’ve probably already been thinking about your joint futures. Make sure you cover estate planning, insurance and spousal benefits, and plan of life questions. This will save significant future stress and heartache. Plus it will give you—and your partner—peace of mind to know that you’re taking care of your loved one’s future.
Remember, you got yourself this far, saving, investing, and making sound financial decisions. You still have the wherewithal to continue on that same path—simply be reasonable in your spending! Once you follow this train of thought, you’ll be ready to start living your best life in retirement.
Still working on forming a nest egg for your golden years? Call the expert investors at Ty J. Young Inc. to learn how you can grow your savings, money protected, at 877-912-1919. If you also want to grow your retirement-based knowledge, don’t forget to regularly read our helpful Retirement You Earned blog, too!