There are so many things to remember when trying to plan out your retirement.
That’s why we’re sharing tips to consider when planning for your future and your goals!
The 4% Rule
When withdrawing from your retirement funds, it’s best practice to use the 4% rule. What’s the 4% rule, you ask?
The 4% rule assists you in determining how much you should withdraw from your retirement fund. This helps make sure that you’re not withdrawing too much money too quickly.
- Saving for retirement
Remember, the funds you’ve set aside for retirement need to last until you’re around 80 to 90 years old. To apply the 4% rule, you withdraw 4% of your retirement fund during your first year of retirement, then each year after you increase the percentage to follow the rate of inflation. This ensures your retirement fund will last you about 30 years.
- Prioritize debt repayment
I think we all can agree that retirement is more enjoyable when you enter it debt-free! In order to do that, it’s best practice to prioritize paying off debts and mortgages as you approach your 60s. Eliminating debt frees up cash flow for retirement activities and travel, allowing you to enjoy your golden years with peace of mind!
- Consider part-time work
A part-time job provides an extra source of income that can contribute towards whatever you want! Also, a part-time job will keep you busy if you’re not ready to quit working just quite yet. If you already enjoy your current job, consider reducing your hours to ease into retirement. Consider working part-time in a place of interest or a hobby, such as tutoring, art classes, bus driving or sewing.
- Be cautious about downsizing your home
During retirement, it’s common to downsize to reduce your bills or move closer to your family. Although downsizing is common in retirement, it can come with hidden costs. When you sell a house there are many taxes and fees that follow. Try researching the cost of downsizing or speak with a professional to decide when the right time to downsize is for you.
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- Choose a trusted executor for your estate planning
Planning your estate may be an emotional topic for your family, however it’s important to communicate your wishes surrounding estate planning with your family. Choose a trusted family member or friend to be the executor as the role comes with many significant responsibilities.
- Take advantage of seniors’ discounts
There are many ways to save money throughout your retirement, such as using seniors’ discounts!
There are many places that offer discounted rates for seniors, including:
-
restaurants
- activities, such as bowling, bingo and mini golf;
- pharmaceutical drugs, massages, therapy;
- festival entries; and
- and more!
Be sure to always ask employees and keep an eye out for signs!
By following these tips, you can set yourself up for a successful retirement!
If you’re interested in learning more, or if you have any questions, give us a call at 1.866.863.6237.