“Do you want to lead a tension-free life after you retire? Want to build a happy future for your loved ones? Want to Know how? Take these essential steps in advance so that you can welcome the next phase of your life with open arms.”
What do you see when you visualize life after retirement? Taking sunset strolls on sandy beaches with your beloved or maybe sipping piña coladas on a dreamy evening in Paris watching the Eiffel tower. No matter how you visualize your future, it won’t happen in reality if you don’t take the necessary steps now. Unfortunately, many seniors are compelled to return to work post-retirement because they have failed to make proper planning and preparation before leaving workforce. If you don’t want to end up in a situation like this, take these steps now!
- Plan your savings
After you retire, the savings will bridge the gap between your income and expenses. The best way for socking away funds is IRAs and worked-based 401(k) plan. The traditional IRA saves your taxes now while you are still working. There is also a Roth IRA that provides tax-free withdrawals during retirement, provided you pay the tax now. In case of 401(k), your contribution lowers the income you are currently taxed on and often matches with the contribution from your employer. So choose what suits you the best and plan accordingly. Planning your savings was never easy! So, start now.
- Identify source of income
Blame it to those Hollywood flicks. They made us believe that retirement is all about long vacations and golf game. But in reality, the picture is absolutely different. You can either extend an existing job or try out a small business. After all, earning some extra bucks is not bad.
- Secure your health
Do you rely on your employer for health coverage? It’s fine as long as you work. But what after you retire? Remember, you won’t be as healthy and fit as you are now. How about a Medicare plan that will secure your health after retirement? There are numerous plans available in the market. Choose the one that suits you the best. Make arrangements while you are still working and know your options. Also remember, at one point of time, you and your partner will rely on the healthcare system. So choose your plan that is appropriate and most importantly, affordable. Expensive medical expenses during the retirement years can land you in deep trouble.
- Cut your expenses
Every penny counts. So save as much as you can. Don’t take me wrong. This doesn’t mean that you have to sacrifice good things in life? Cut down your expenses on unnecessary things. How about owning a single car instead of two or taking the economy class while traveling on airplanes or using TV and movie streaming service instead of cable television? Trust me; these small things will make huge differences in future.
- Pay off debts
Check the number of credit cards in your wallet. I’m sure there’s more than one. Do you plan to pay the debts long after you have retired? If that is your plan, think again. Regardless of the type of debt, it is best to get off it before you retire. In this way, you can be in a tension-free zone after retirement. A study by the Employee Benefit Research Institute in Washington, D.C, found that Americans were retiring with an average debt loan of $73,211 and those on a fixed income were struggling to pay down their debts. If you don’t want this to happen to you, start paying off now.
If you dream for a fantastic retirement, start planning now because good things take time. Take advice from experts, follow these tips and tricks so that you can maximize your savings and retire without worry.