As we strive for financial independence, we need to look for financial strategies for successful retirement. Retirement can be the most fulfilling time of your life. What is included in financial strategies for successful retirement? Retirement income, health care, short and long term, housing, goals, children, health care provider for family members, travel, pets, continue to work, open a business, recreation, just to name a few.
Financial strategies for successful retirement, does not just happen. It is achieved by anticipating your future needs and wants. Consider your lifestyle expectations and goals you’ve always wanted. First and foremost, you must know your retirement income. As stated above, look at the categories (you may add or delete) that are in your future.
Estimate your retirement expenses, monthly or annually. Within your financial strategies for successful retirement, you should figure approximately 70-80% of current income to maintain your present lifestyle. Much of the time, the early or beginning of your retirement years are the most expensive due to still being quite active.
Financial strategies for successful retirement must include planning well beyond 65-66 years of age. Actuaries indicate that you should plan to live another 20 + years. So, adjustment for inflation must be taken into consideration as well.
Consider the following for financial strategies for successful retirement:
* Always pay yourself first even if money is tight. You should consider
yourself a monthly bill
* Save, save, save. Compounding interest is a miracle particularly in
long term savings such as a tax deferred account
* Put the max allowed in a employee sponsored retirement plan
* Have an emergency fund
* Do not touch your retirement funds
* Continue to invest, save after retirement
* Investigate medical gap insurance that goes with Medicare
Financial strategies for successful retirement not only calls for
you to do your homework, you must also know that adjusting your plan must be part of your retirement plan. As always in anything you do when it comes to finances, see professional advice from a qualified financial advisor such as a CPA, an accountant or tax attorney.