A peaceful retirement can be derailed by some easily avoidable mistakes. As you start thinking about when to retire, be mindful that the right choices can bring you greater confidence later in life.
Do manage and pay down outstanding debt
Start with your highest interest debt (often a credit card) and pay it off. The sooner you eliminate debt, the sooner you remove worrisome obligations. A little extra each month will help keep you on track toward your financial goals and fewer worries.
Don’t underestimate expenses
Americans often misjudge how long they will live, resulting in unforeseen expenses. Living longer means additional years of bills, mortgage payments, leisure costs, and living expenses.
Tip: Build a reasonable budget, keeping in mind that your retirement expenses may not differ greatly from your expenses today.
Do invest wisely
Your investment can be in a home, business, education, stock market, or any vehicle that may provide a return. Whether it’s bettering your education for a more lucrative career or diversifying your stock portfolio, invest with purpose. Those who retire early actively plan and contribute to investments. Always remember to double check you’re taking advantage of any employer matching program.
Don’t retire too early
An early career exit can be a costly mistake. Timing is everything as it relates to when and how you start to draw retirement income.
Tip: Determine when to exit the workforce by calculating the amount of savings needed to enjoy a comfortable retirement.
Do live a healthy lifestyle
Unplanned medical bills can derail a financial goal quickly. Your annual check-up can often help detect and prevent a small health issue from becoming life threatening. Ride a bike instead of driving to burn calories and save on gas. Simple healthy living steps may not only help you live longer, but could boost your finances in the long run.
Don’t retire without a strategy
our unique needs and goals require a custom strategy. There will always be financial surprises, but a strong strategy can help you navigate an uncertain future.
Tip: From tax advice to estate and financial strategy resources are available to help you build the strategy that’s appropriate for you and your family.
If you have questions about your retirement strategy, call the office to schedule an appointment.
For a comprehensive review of your personal situation, always consult with a tax or legal advisor.