If there’s one thing that I’ve learned in this life is that nothing stays the same forever; the same is true about your job or career – it will eventually come to an end and you’ll have to face retirement sooner or later. But that’s nothing to be sad about, in fact, if you ask people who are working to make a living, they’ll tell you just how miserable their life is and that they would choose to retire if they had a choice – meaning if they had another way to make a living. Since this isn’t a matter of “if’s” but rather a matter of “when,” then it is prudent to prepare for retirement years before it even arrives.
Here are 5 things to keep in mind when planning for your retirement:
1.) Determine your Retirement Expenses
– Of course, when you retire you’ll have less income compared to when you were still working. While you may have a substantial amount of money in your savings account, it is not good to use that money for things like travel, hobbies and entertainment. If you want to be able to spend more than what you can afford, then invest your money in the stock market or a VUL insurance plan 10 – 20 years prior to your retirement. The financial benefits through dividends and value increases will make it possible for you to earn even more than what you’re making now.
2.) Review your Insurance Coverage
– Make sure to review your life, health, homeowners, and auto insurance policies so that your coverage is appropriate for your new lifestyle. Your medical bills and prescription meds may no longer be covered by your health insurance and you’ll have to pay out-of-pocket (OOP) for them. Better learn alternative health and wellness programs and meds to cope with the times. But if you opted for VUL insurance, then this will not be as much of a problem as it seems.
3.) Develop a Retirement Income Plan
– My top favorite alternative income strategies include a) stock market investment, b) online store/affiliate marketing, c) freelance jobs/SME (subject matter expert) or consultant, and d) real estate. These kinds of retirement income will easily help you make a 6 to 7-figure salary per year and the best part is that once you become acquainted with the business, you’ll only keep doubling or tripling your income revenue from there. The only downside is that you may have to spent months or even years to develop the skills needed in order to succeed.
4.) Review Wills, Trusts, Powers of Attorney, and Beneficiaries
– You will be forgiven for a lot of things, but if you failed to share your estate, money and other wealth to your family, you will surely be cursed until the afterlife. Let your lawyers take a look at your will, trust, powers of attorney, beneficiary designations, and investment plans to ensure that you and your beneficiaries are safe from any legal technicalities that will make your lives difficult.
5.) Set Aside Emergency Funds
– You may have to create at least 2 separate bank accounts. One will be used for all your average needs and wants and the other is for emergency purposes. It doesn’t matter what the reason for the emergency is as long as you will address the pressing matter at hand quickly and discreetly. Some of the most common of these are health issues, debt/financial issues, business-related issues and more.
While committing errors have been proven to be mathematically detrimental to your advantages, planning for retirement ahead of time makes the risks less worrisome. Often, most of your plans essentially anticipates all possible errors that could happen, thus you are likely to succeed. Good luck with your retirement! And may your life be as fruitful as it could ever be.