Retirement is the thing that so many peoplelook forward to, but it often comes with a fair amount of disappointment orworry. When retirement is just a few months or years away, you can startpreparing to make the transition easy. Consider aspects that will keep you busysuch as working part-time and other options for keeping a bit of wiggle room inyour budget.
Increase Cash Reserves
Yes, you can apply for Social Security and begin pulling out of your 401k plans but that all takes a lot of time. You’ll want to start building a cash reserve when you prepare for retirement. You can start pulling out of your money market accounts, and savings account to help fill the gap between your first pension check and your last paycheck. When setting yourself up for retirement, be sure that you don’t have a large gap between money going into your account. It’s not a great way to start retirement, so it’s best to have about five or six months of expenses set aside.
Define the Lifestyle You Want
Do you want to explore the world, hike upto Machu Pichu, or sit at home and read? Retirement is about finally living theway that you want. However, many people worry about having the lifestyle theywant while also staying financially stable. It’s a fine line, but if you putdown some retirement goals, you can work with your budget to make it happen.
When you define your lifestyle forretirement, make sure you consider aspects past indulging your hobbies. Are yougoing to be able to travel regularly to visit family? Do you want to workpart-time or explore options for startingyour own business? Put your goals down on paper and start crunching thenumbers. The question isn’t just how much do you need to retire. It’s how muchdo you want to have during retirement.
Explore Your Unconventional Options
Liquifying unnecessary assets, downsizing,and even sellingoff insurance policies. Did you know that you have more retirement optionsthan just investing in a 401k, bonds, or stocks? If you feel like you don’thave many options available as you approach retirement, think again.
One of the less explored options for thosewho are facing struggles with their health is a viatical settlement. What is a viaticalsettlement? People who have a terminal illness and need access to theirlife insurance policy can request the sale or settlement of their policy. Manyunconventional options might be available given your specific situation.
Adjust Your Investments
As you age, you can begin adjusting your investments. While many people will be conservative with their investments while they’re young, you can afford to diversify your risk as you enter into your retirement years. You may shift your mist to a 60/40 blend of short term and long-term investments. Work with a financial advisor to learn about how to manage risk on short term investments. You don’t want to lose your retirement funds. But many people want to have more access to their money as they age.
