December 5th, 2023 | 12:30PM MST
Written By: Teresa Milner | Senior Wealth Management Advisor with Pearl Capital Management
Numerous questions arise when it comes to identifying the essential ingredients for ensuring peace of mind about your future. Drawing from my experience, many aspects of life need to be considered to be prepared for retirement – everything from emotional readiness, lifestyle consideration and financial planning. Your financial health is as important as your physical health, so take steps now, prepare with a plan, and avoid navigating through life on autopilot.
Let’s put your financial ingredients into 3 categories:
- How much money do you make?
- How much money do you spend?
- How much money do you save?
While this may seem simple, getting guidance on the ingredients is a wise choice!
The following are 5 steps to take to enhance your peace of mind regarding the future:
1. Saving today for tomorrow:
- Fixed monthly payments
- Lower interest rate than a credit card
- Repayment periods from five to 30 years
- Interest payments may be tax deductible
2. Lifestyle Choices – Budget Planning – Goal Setting
- Establish and maintain an emergency fund.
- Know where your hard-earned money is going and live within your means.
- Think about how you will spend your time in retirement and how that impacts your overall well-being.
- Set goals and know what you are saving for.
3. Healthcare Costs
- Educate yourself on the long-term care insurance options.
- Healthcare costs typically increase in retirement, so feel confident you’re prepared for this.
- Plan for Medicare before you turn 65.
4. Educate Yourself on Retirement Options
- Timing on filing for Social Security
- Do you have pensions/government programs to evaluate?
- Do you have a plan to strategically save money on taxes during retirement?
5. Meet with a financial professional to discuss your retirement goals
- Assess your investment portfolio – diversification is key.
- Learn if you’re on track to cover your lifestyle expenses in retirement. If you have extra income now, get guidance on where to direct it.
- Plan for tax efficiencies throughout your financial life.
Peace of mind about retirement comes from a combination of emotional well-being, realistic expectations and financial stability. Having the best ingredients in place now is the best way to prepare for your retirement. Regularly reviewing and adjusting the ingredients in your retirement plan as needed will contribute to a more secure and satisfying retirement experience.
Find out if your financial ingredients have you on track for a successful retirement. Try out our handy retirement calculator by clicking here.
