Your need for retirement has to be thought about and decided well before you step in for your retirement speech telling your boss about all that you think.
It might even be the case that you think you have enough money and so many things in your free time, when you retire. Your retirement party may have been scheduled and your RV might be already packed, but it’s never too late, think twice before you go for something as big as your retirement.
Evaluate yourself and see to it, if any of the following things are true:
You yet don’t have enough budget
Future is unpredictable; you can never guess what the future has for you in store. You can actually never estimate your future expenses and it is very difficult to calculate how much you would require satisfying all your wants.
Although it is likely to be a drop in your expenses, for example the cost of your work clothes and conveyance, yet there may be a rise in your spending, like your hobbies.
Therefore to ensure than you have an adequate budget, try living on your retirement budget for sometime before you retire.
What do you plan to live on, your interests or the dividend
If you plan to live like a monk after retirement, things might get very simple for you. But for the others who believe in living life king size, they might want to give it another thought.
It has been seen that that yields have fallen to half in the last 20 years. This is mainly because most of the Companies have cut their dividends due to recession.
It is a distant dream that one would be able to out all the money in low-earning investments.
Road test all your dreams
While people plan to shift location after retirement, it is very important that you first test that location beforehand and make sure it is good for living.
So why not try something, as a vacation to that place and see if it’s a good fit. When moving to a place with a different or difficult climate, first go and try something like Arizona during the month of August.
Even if you plan to start a new career after retirement, try it before it becomes too late to repent. Financial planner Ed Jacobson, the author of ‘Appreciative Moments: Stories and Practices for Living and Working Appreciatively’ says “It’s far better to benefit from the information, experience and acquired wisdom of those who have preceded us on the path we’re contemplating in retirement”.
Are you following the delay strategy to pay off
Though this is something everyone would want to do, that is to start benefits but remember one thing, the early you start, the better it is for you. Bob Carlson, the editor of the website ‘Retirement Watch’, and a co-author of ‘Personal Finance for Seniors for Dummies’, says that the choice as to when to begin to get benefits closely depends on how much are you going to get paid in the future.
How do you plan to pay medical costs, you don’t yet know
If you do not have a medical coverage and you still plan to retire, first make sure that you have an idea as to how are you going to pay for health insurance. Know all about Medicare and do read some guides as to how to pick a Medicare drug plan.
Have you talked to your spouse about the plan
There have been several such cases when couples find themselves out of place due to some or the other type of miscommunication. Once a man retired from his job thinking his wife planned to work an additional five years after his retirements. While he took it as a plan, the wife thought it was optional.
Therefore avoid such mistakes and plan accordingly.
Paying off the mortgage
It is always a good thing to have your home free and clear since it not only reduces your monthly costs but also lessens the amount which you are required to pull from your retirement accounts.
Do you have a credit card debt
Whenever you are left at a fixed income, this credit card debt is likely to become disastrous for you. When you are made to pay unexpected bills after retirement, it becomes very difficult to manage. So in case you have a hefty debt on you, consider calling a legitimate credit counsellor and a bankruptcy attorney to discuss your options.
Do your kids still depend on you for finance
Until and unless your kids are self sufficient and no more require your lifelong support, you are not ready to retire.
Several parents are today being sucked by their kids, financially, which is something big to worry about.
Are your funds scam-proofed
Verify your account numbers and balances and don’t just go for the advisers words. Have immense knowledge about the investment policy in which you intend to invest. Be very truthful and do not just go for policies which promise you huge returns. Use your mind and do not accept vague explanations.
(photo credit: Getty Images)