Retirement Is Near and You’re Not Ready. Now What?
If you’re like many Americans, you’ve long dreamed about the day you get to leave work behind and start living life on your terms. Retirement is the ultimate financial goal for many workers. You finally get to set your own schedule and your own priorities.
As joyous as retirement may be, it can also present some substantial challenges, especially from a financial perspective. You may have limited guaranteed income from Social Security or employer pensions, meaning you might have to make your personal savings last all the way through your retirement. If your savings level isn’t where it needs to be, you could struggle to be comfortable after you stop working.
What are your options? Obviously you still want to retire, but you want to do so in a way that is financially secure and that allows you to live comfortably. What can you do in your remaining working years to be more prepared?
Below are three options to consider as you approach retirement. The earlier you take action, the earlier you can solidify your financial position and leave the working world behind. Think about implementing the three steps below:
Look at a phased retirement.
There’s nothing saying you have to retire all at once. You don’t have to quit work completely. It’s not an all-or-nothing proposition. The beauty of retirement is that you get to decide what it is and what it means for you.
If you’re not ready either financially or emotionally to retire completely, think about ways to ease into it. For example, maybe your employer would let you transition into a role that has fewer hours and responsibilities. You’d continue to work, and your employer would continue to benefit from your knowledge and experience.
Or you could leave your current role and get a part-time job or possibly work as a consultant. Just because you retire doesn’t mean you have to stop earning income. Think of ways to keep making money as you gradually transition into retirement.
Rethink your budget.
It’s possible your assets are not sizable enough to generate income to cover your planned expenses. However, if you make cuts to your budget and reduce your spending, you may actually have plenty of assets.
Go through your budget and highlight areas in which you can cut costs. Perhaps your travel plans don’t have to be so extensive. Maybe you could cook more meals at home rather than dining out. You and your spouse may be able to get by with just one car.
Rethink your retirement and your planned spending. You may be in a better position than you think, especially if you can get by on less income.
Sell assets to raise money.
If you’re like many Americans, you may have accumulated a lot of “stuff” over the years. This stuff could include electronics, clothing, sporting goods, collectibles and more. It might include high-value items like cars, art and even property.
Think about whether you really need all these items in retirement. What if you could sell them today and raise money to put toward your retirement savings? You may be able to sell them privately or go through a third party, like a consignment or auction service.
Also, if you have a significant amount of equity in your home, you may be able to sell it and downsize. You can take the excess equity and put it away for retirement. As a bonus, you may be able to save money on your mortgage, utilities, taxes and more.
If you’re not ready for retirement, a few small adjustments might be all that’s needed to help you catch up. We can help you analyze your goals and needs and develop a plan. Let’s connect soon and start the process.
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16078 – 2016/8/31
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