Lao Tzu once said that “the journey of a thousand miles begins with one step.” Well, retirement is very similar. As you start—or continue—your journey, all the gradual things that you do step-by-step are what will ensure your success. Picking some of these trustworthy options to help you retire will aid you in building your nest egg at a feasible pace.
- Account for inflation. When you watch old movies, have you ever noticed how cheaply people can buy cars, food, or new clothes? Because of inflation, the dollar doesn’t stretch as far as it used to. Ultimately, that can affect how much your money is really worth when it comes time to step down from the workforce. You may need an expert to help you in this endeavor, but make sure to calculate your retirement fund with inflation in mind.
- Have an emergency fund. Many future retirees have no other option other than withdrawing money early from their 401(k)s. Whether they’ve fallen into debt, are dealing with emergencies, or cannot sustain their ways of life, sometimes the only resort is taking money from their retirement savings accounts. Even worse, they’ll deal with harsh monetary penalties, lessening the value of their nest eggs by a drastic amount. One way to combat this problem is keeping an emergency fund. That way, you have an account you can safely dig into, sparing your retirement savings.
- Supplement your income in retirement. If you retire too early to take advantage of Social Security right away—or want to wait for higher distribution rates—consider supplementing your income. You don’t have to go back to workforce, but you could support yourself selling artisan goods, tutoring students, or even speaking at events about subjects of your expertise. Even a little bit of money rolling in can be a good thing.
- Plan your lifestyle. You can never do too much preparation with this idea among the trustworthy options to help you retire. Once you have an estimate on your retirement fund—and your future earnings from Social Security—plan out your lifestyle. Figure just what kind of weekly, monthly, and yearly budget you will have. Then, do the math, comparing your cost of living with your “salary” at retirement.
- Do a practice run. Sure, knowing the numbers about your income is an important step. However, many things are easier said than done. Try a practice run of living on your retirement savings. First try a week, then a month if you’re feeling up for it. That way, you won’t be caught off guard by any potential pitfalls in your lifestyle when it’s far too late to fix them.
As you continue on your journey to your golden years, don’t forget about these trustworthy options to help you retire. Make sure that you continue to take an active role in your retirement; otherwise, you may find yourself with no other options but to continue toiling away in the workforce.
Did we mention a bonus option to help you retire? Calling Ty J. Young Inc. 877-912-1919 to begin. We can help you create a healthy-sized retirement fund with our money-protected guarantee. Finally, check out our blog for information on finances and fun in the twilight of your life.