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In the last five years before you retire, there are several essential measures that you need to take. Let’s go through some of them here.
To determine whether or not you have sufficient funds to retire, you need to create an accurate estimate of the amount of money you spend each month, as well as the amount of money you will have coming in each month. This is the single most significant action you can take in planning for your retirement.
Put your present monthly costs and the amount of money you bring home from work on paper. Consider the expenses associated with hobbies, house upgrades, and automobile repairs as additional variable costs.
Over the years, one of the most common goals clients have shared with me for their retirement is to see the world. Why wait? Visit the United States of America even if you don’t have time to travel the round-trip journey to New Zealand, which takes 24 hours. Traveling to the middle of the country in a single day is possible. Take a trip to the seas off the Florida Keys to go swimming, go to the Grand Ole Opry in Nashville, go on a whiskey tasting tour in Tennessee, go hiking on the red rocks in southern Utah, or take a rafting trip down the Grand Canyon. All of these activities are great vacation ideas.
Even if you believe your employer will not be amenable to a flexible, remote, or part-time schedule, you should still inquire about the possibility. The New Flexible Retirement survey indicated that 25% of adults over 55 said that their employers permitted workers who were approaching retirement to convert from full-time to part-time schedules. This finding was based on the responses of respondents who were 55 years old or older. You have a one-in-four chance of being one of the lucky ones. If this is the case, you should seize the opportunity. If not, then argue in favor of it.
Conduct a trial run of your retirement plan now if it calls for you to spend only 70-80% of your present salary once you reach retirement age. Could you live on less and enjoy retirement? You won’t know for sure unless you give it a go. Establish an automated transfer from your checking account to your savings account. This will minimize the amount of money you spend each month, simulating the income you would get in retirement.
A significant number of people apply for Social Security benefits as soon as they become eligible for them. Some won’t show up for work, even for one more shift.
Nevertheless, the timing of your initial application for Social Security benefits is a significant issue that is entirely under your control. If you don’t cash the checks immediately, the total amount will increase as you wait.
Not everyone is cut out to be patient. However, because this choice will permanently affect a significant portion of your incomeâ€”it may be the only source of income you will ever haveâ€”it is important to understand what is at risk for you.
It is never a pleasant experience to see the value of your portfolio rise only to fall again. It doesn’t matter how you got there as long as you end up with enough money; that’s the only thing that matters.
On the other hand, things can drastically change after you’ve reached the retirement age. When you make consistent withdrawals from a portfolio, volatility exerts a significantly stronger influence on the portfolio’s value. Retirement planners term it “sequence risk.” If you can smooth out the fluctuations in your income, there is a better chance that your savings will last you through your whole life expectancy.
Invest some time in calculating which combination of assets will provide you with the required rate of return while still exposing you to a degree of acceptable risk. The portfolio’s risk-to-return characteristics will impact how much income you will have and how long it will continue to flow into your life.
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M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementiong a sound plan for your retirement. We are commited to helping you achieve your goals. Visit us at M. Dutton and Assoiciates.COM. Tel. 212-951-7376: email: [email protected]