Debt Retirement PlanningRetiring well is one of the main goals for almost every American today. The fact is, we all work very hard, and it's always fun to imagine a time when things will be easier, and we can do the things that work prevents us from doing now. We hope to do this while remaining financially secure, and free of debt, and debt retirement planning is a good step to consider to get you on your way, no matter how young you are. But what if your planning isn't enough? Sometimes, due to factors we may not be ready for like natural disasters, frequent travel or poor health can really put a strain on our retirement savings. So what do you do if your retirement savings look like they're coming up a bit short? Save, save, save!
Saving In RetirementJust because you're retired, doesn't mean you can suddenly live like a king. In fact, suddenly, ensuring you save money will be one of the most important factors in your life. There are a number of different ways to save money, and the best way is to start out by looking at your portfolio. Have you adjusted your investment strategy to your new risk tolerance, which is likely a lot lower now that you're retired? Check to see how your portfolio is allocated. If you are too heavy in stocks, bonds or another asset class, you could be putting too much into one basket. What's more, risky stocks (such as high technology companies) should be avoided altogether. Remember that your retirement savings is all you have - don't lose it all chasing after a "big win".
Too Much Home Equity?OK, so there may not be such a thing as having too much home equity, but remember this: where you live in the country has a huge effect on how much you can spend and how long your retirement savings will last. Moving to a smaller home in a more affordable location can not only lower your expenses, but also provide excellent wealth you may not have considered, as real estate prices in major markets are at all time highs.
Change SlowlyHey, no one said you have to dive straight into retirement head first. In fact, before you make that huge step, you may want to consider a few baby steps. Consider working at your job on a temporary or consulting basis. Also, consider part time work. While some people believe it is "below their station", to many others it is very rewarding, and fills in time they would otherwise spend bored.
Retiring Well - A Work In ProgressJust because you've retired doesn't mean you should let your guard down. In fact, retiring adds a new level of financial awareness that you should use, or things could become a problem. Remember that if your retirement looks rosy, it's planning that got you there. Keep planning, and things will turn out better than you thought.
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