Retiring requires years, often decades, of working diligently to set aside earnings while being able to provide for yourself and your loved ones. It’s no easy task, but with the right financial strategy, it can be made simpler. When you implement these strategies, you can retire with confidence and peace of mind.
Incorporate Growth Investments, But Don’t Put All Your Assets In One Basket
Inflation will always be a factor in long-term financial planning. That’s why it is a good idea to allocate a portion of your assets to a growth investment instead of keeping your savings in an account that grows at a low fixed rate. An investment such as an exchange-traded fund (ETF) offers more room for your savings to grow.
On the other side of the coin, market volatility swings in both directions. While you will see more growth over the long term, this is not a linear upward trend. There will be peaks and valleys, and in a struggling economy, that is not ideal if you need funds on short notice.
In short, utilize low-risk growth investments but keep money on hand for the short term.
Plan Expenditures According To Fixed Income – Not The Income You Earned During Employment
Your fixed retirement income will likely be less than what you earned during your career. You won’t have the same flexibility in spending that you once had, but you can make it work. Consider your cost-of-living expenses and what it takes to cover the necessities. Spending too carelessly could lead to burning through savings, making your retirement short-lived.
Let Go Of Guilt And Indulge In New Meaningful Activities
While you will have to budget wisely, you shouldn’t worry about dipping into your retirement savings. Spending portions of your savings on enjoyable activities in moderation is what your savings are there for. In fact, you should also give yourself a minimum spending amount to treat yourself guilt-free.
Retirement is also an opportunity to seek fulfillment in other activities. It’s easy to lose a sense of purpose without a hobby or activity to keep you busy. Without this sense of purpose, retirement can have an unintended negative impact on your mental health.
Get Quality Health Insurance While You’re Still Working
Employment is one of the factors insurers assess when assigning health insurance policies. When you’re employed, you’ll get more favorable coverage at a lower cost. Finding quality health insurance is considerably harder when you’re retired. You’ll likely encounter health issues at some point, and the last thing you want is to lose all your savings to medical bills. Good health insurance will eliminate the majority of costs you’d have to cover, allowing you to maintain peace of mind.
Make Retirement A Reality
At Hometown Financial Group, we’ll give you the best guidance to ensure you can retire worry-free. We provide our assistance with expertise and compassion, bringing you the best financial planning strategies. Call us today at (919) 887-1236 to learn more.