5 Important Tips for Retirement or Semi-Retirement
You’re thinking about retiring or about downshifting your work-life in exchange for more free time. Either way, it’s a major step and it’s something to look forward to. But like any major financial decision you make, it’s important to prepare.
Here are 5 Tips for Getting Yourself Ready to Retire.
1) Make Yourself Happy. After 30 or 40 years of work the leisure of retirement can feel like a drastic change. It’s been said that we are happier when we feel useful to other people. Perhaps the key to a happy retirement is volunteering, mentoring, coaching, teaching, or finding some other way to make a contribution to society.
2) Shoot for Balance in Your Finances. Timing the market or, on the opposite end of the spectrum, sticking your money under the mattress out of fear – these are extreme positions you want to avoid. They are symptoms of emotional investing and it happens with some frequency with people who suddenly have time to really think about their money. A healthy approach is to meet regularly with your advisor – perhaps every quarter – and to ask as many questions as you can.
Also, the objective in retirement is to protect yourself by keeping your long-term investments balanced and diversified.
3) Trim the Fat. Your retirement years should be full and abundant. To ensure this for the long-term, look to cut out some things that create a drag on your financial engine. Cut housing and living expenses where possible. Take a look at the various insurance policies you own. Look to recalibrate your tax strategy. Plan a monthly budget, taking into account the big ticket items — the season’s tickets at Fenway or that candy red convertible – which you want to treat yourself to.
4) Work Part-time. With a little income you can avoid withdrawing from your investment accounts. One of my clients worked as a starter at a golf course and another worked at a candy shop downtown. They both got a chance to meet new people and this made the work enjoyable. Also, they made money. That allowed them to leave their investment accounts alone. So while they worked part-time the money in those accounts were working fulltime for them.
5) Talk to Your Advisor. Proper financial planning is the springboard to financial success, and it’s no different when it comes to retirement. The earlier you talk to your advisor the better. Do all you can to cover the variables that can affect your future. You will sleep better at night knowing that you did.
Listen below to Win Damon and I as we review this topic on WNBP radio 1450 and wnbp.com Newburyport!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.
Securities Offered through LPL Financial, Member FINRA/SIPC
Saturday, June 2, 2012