Who doesn’t want to win at retirement?
Of course, we all do. But how can some folks be winning easily and others seem to be way off track for their retirement goal!?
If you look at the most successful retirees, you’ll notice a common link. A common thread that runs through each person as if they were all connected or all read the same blog post!
Let’s take a look at what it takes to win at this game of retirement:
1. Have Specific Goals and Review Them Often
So, in other words – you think retirement will just work itself out?
You have to know what target you’re aiming for if you’re going to hit it. If you don’t have some defined goals you’ll really have no idea how to evaluate your progress.
This is Planning 101. What do you want to achieve? When do you want to achieve it?
Sit down and jot some ideas on a piece of paper with your loved one so you can get a taste of what you’d like to do.
No goal worth achieving EVER works itself out. You must work hard at reaching them.
One of the ways you work hard at reaching your goals is to define them and then review them regularly!
2. Have a Plan for Something Meaningful in Retirement
So what do you want to do once you are retired? Hopefully you can think of something very meaningful.
I can tell you right now that watching the Price is Right and playing golf every day will get old after a while.
You need to have an idea how to use your passions and your purpose in retirement to have an impact on others. How will you build up relationships, encourage others, leave a legacy and live for something greater than yourself?
That is a meaningful retirement.
3. Have a Plan for Diversified Income Sources in Retirement
From where will you receive your paycheck? Social Security, Pension? You might want to start now to perhaps take your hobby to the next level and start making some decent income from that.
Diversified income sources means not only places where you are receiving money, but also how you are taxed on the income. In other words you need income diversification and tax diversification.
Maybe you want to diversify your retirement accounts from a tax-standpoint. This may mean you look into opening a Roth IRA or consider a Roth IRA conversion so that you can have tax-free income in retirement.
Maybe you’ll want to start your own business or become a consultant in the field you just retired from. At any rate, you need to know where your cash will be coming from.
4. Have an Idea of How Much Retirement Will Cost?
You may not need $3,000,000 or even $1,000,000. Maybe you’ll just need to have enough to cover some regular expenses, and supplement your business income.
The point is retirement is different for everyone, so there is no cookie cutter approach, which means that you need to take a hard look at your own situation and figure out how much you are going to need to fund the goals that you have and the desires you’d like to see happen in retirement.
You may also want to consider the cost of health care or a Long-Term Care stay at a nursing home as part of your over all cost.
Run some numbers, consult a professional, look at some helpful websites – or do all three. You just need to make sure you’ve looked at how much this will cost you.
5. Have a Plan to Become Debt Free in Retirement
Aside from doing something meaningful in retirement – this might be the next most important one on this list.
Because if you are debt-free, you don’t have to worry about saving up millions of dollars. If you lead a pretty simplified lifestyle, have all your debts paid off and have some savings – that’s a really great start to a nice retirement journey.
When I say debt freedom I mean everything! Paying off the mortgage and all. If you can plan to have all of it paid for by retirement you’d be doing yourself a huge favor.
Debt freedom is something that can never be taken away from you.
What else would you add to this list?
Photo by AXEHD