HOW TO START PLANNING YOUR RETIREMENT?
How To Get Started?
When it comes to retirement, it may help to think of it as a new beginning, instead of a finish line. In fact, with increasing life expectancy, it’s essential to have a plan and ensure your income sustains throughout.
But that leads to one crucial question popping up in your mind —will I have enough money to live the life I aspire in retirement?
While there’s no magic formula for an accomplished financial life post-retirement at Money Multiplier we can help you find the right answers and the right strategies to create enough corpus for a confident retirement life. This blog will not only guide you on how to balance your assets against your expenses, but it will also offer tips to help you create a plan.
If you’ve already started with retirement planning, no worries, these tips, and strategies will help you polish your plan and adjust it based on your evolving needs.
Envisage Your Retirement
Determine what you want your retirement to be; envision it, it’s really important. After all, you’ve spent years preparing and planning for it. But now that you are approaching retirement, it’s time to get precise, clear, and targeted about your plans. Plan your finances, your life, and your aspirations post-retirement. It’s very important to have a concrete idea of your life in retirement. It will help you determine expenses and create a potential budget.
Here are a few questions that will help you envision your retirement life –
At What Age Would You Like To Retire?
Most of the people take life as it comes. It’s very important to understand whether you belong to this breed of people. These people do not believe in planning their life, their work, and their finances. They are the easy go types who often land up in trouble.
When it comes to living a confident, peaceful, respectful, and financially accomplished retirement life, it is very important to plan “When you want to get retired”.
Do you or your loved one have an ideal retirement age in mind? If yes, please specify on a piece of paper. As the common observation goes, often your retirement age is built around your career milestones or a sense of financial preparedness.
Where Would You Like To Spend Your Post Retirement Life?
Everyone has some or the other dream for their golden years. It’s very crucial to define whether your dream retirement includes a dream location or not? If yes, specify the place. As you identify your dream location, consider cost implications.
How would you like to spend your days?
It’s very important to determine this question. As it will throw light on your aspirations, your source of income, and your budget. Determine what will an average day in your retirement look like whether it will consist of leisure activity, exploring your hobby, travelling to a dream destination, or part-time work.
Once you’ve answered these questions, the next step is to estimate expenses. While it’s simply impossible to know exactly how much you’ll spend post-retirement, you can get a fair sense by looking at current expenses and projection of your retirement life.
Break Down Expenses Into Three Categories
Essential Expenses. This includes inevitable expenses or the must-have expenses like groceries, utilities, transportation, health care, and housing.
Nice To Have Expenses. This includes expenses such as travel, hobbies, dining out, or vacation home or a new vehicle etc.
Emergency Expenses. This includes unexpected expenses like an unforeseen health issue.
Once you have identified your expenses, it’s time to create your retirement plan. Start by identifying your assets and accounts. Then project your income source against your expenses.
Identify Income Source
You can start by classifying your income as either guaranteed or variable. Guaranteed income includes income you’ll receive on a consistent basis such as Social Security, pension, or dividend. Variable income includes income such as personal savings or earnings from a part-time job.
We Are Always There To Help You Create Wealth For Every Stage Of Your Life
No matter where you are in the planning process, we will be pleased to help. Our expert team can guide you to identify your financial goals, create a financial plan for your child’s world-class education and their marriage, a financial plan for your dream retirement life, tax planning, portfolio management, creating a financial pyramid, building a firewall, and more.