If you want to enjoy a comfortable retirement, research everything you need to do long before you retire. Today your easy access to free information on the Internet makes it easier than ever to research almost everything you need to know.
Besides creating a comprehensive plan, be sure to put everything in writing. Recording every detail of your retirement plan will give you the power and flexibility to refine it over time.
Naturally, the sooner you start to plan, the better you’ll feel about your retirement. And, of course, the more detailed your plan, the higher your chances of enjoying a well-funded retirement. Remember, it’s never too late to come up with a great plan of action.
With that in mind, here are a few things you should include in your plans:
Provide For Your Last Wishes
One simple, practical way to help your family manage to pay for the cost of your funeral and memorial arrangements is to get final expense insurance. According to PolicyZip, this type of insurance will provide for all your last wishes at a far lower cost than buying pre-paid insurance.
First, meet with an independent insurance agent to review your various options. Next, enroll in a plan that suits your budget. Finally, assign a beneficiary, the person who will receive the benefit proceeds.
After your purchase, document the policy number and place it with your other estate planning documents. Alternatively, you could give your beneficiary a copy.
Try to review this policy every five years to keep it up to date.
Master the Fine Art of Frugality
Retirees who have been planning their retirement for some time usually find that they have a large sum of money at the beginning of their retirement. Above and beyond this impressive lump sum, they may also find that their investments are doing remarkably well.
Unfortunately, things can go off the rails when retirees go on a spending spree. Thrilled at the prospect of time and money affluence, many retired people tend to become disarmingly generous, liberally disbursing funds for their grandchildren’s college and going off on a whirlwind trip around the country to visit friends and relatives. This splurge could turn out to be a financial mistake if they end up living longer than they expected or if they have medical complications.
If you learn the fine art of frugality long before you retire, you won’t be tempted to make a dent in your retirement funds when you have an apparent surplus.
Double Down on Your 401(k) Plans
The benefits of taking advantage of your company match on your 401 (k) are well-known. But what few working couples fail to take into consideration is that it would be more advantageous for both of them to maximize their contributions to their respective employer’s 401 (k) plans. In fact, not contributing over the years to a 401 (k) plan is tantamount to leaving money on the table. If you and your wife have separate 401 (k) plans, you should both contribute as much as possible.
Kickstart A Brand-New Income Stream
Retiring doesn’t necessarily mean that you should stop earning. While you may have retired from your full-time job, this shouldn’t stop you from working if you enjoy the challenges of business.
There are many ways to start an online business when retired that will generate a passive income. Besides the benefits of increasing cash flow, spending a few hours working on something challenging can be more fun than watching television, going to restaurants, or frittering away your day in other leisurely activities.
In conclusion, a comfortable retirement is never an accident. It’s always a result of early planning and careful investments.
