Preparing for your retirement takes years of planning and wise investing. It seems as if retirement has been the resounding theme of your financial planning life and when the time comes to put your plan into motion, there can be mixed feelings about it. Not everyone is counting down the days until they retire. Some people dream of days with no commitments or responsibilities, while others thrive in a fast-paced, demanding environment and never want to slow down. Retirement is a time in life met by everyone in their own way. Here are five points to consider when adjusting to retired life.
Keep your mind busy
A lifetime of having a daily task list and deadlines is a lot to give up. Although retirement is your reward for putting in a lifetime of work, it’s easy for your mind to become overwhelmed with the silence. It’s important to keep yourself and your mind busy once retirement living sets in. Consider doing some small projects to stimulate your mind, or to finally tackle your bucket list of books to read. Just be sure to keep your mind occupied and avoid sitting idle for too long.
Manage your spending appropriately
Since your income picture will have changed with retirement, it’s important to manage your spending to ensure you have enough retirement money to last you the remainder of your life. A discussion with your financial advisor will help to guide your spending habits and make sure your savings and retirement income allow you to live life to its fullest.
If you are retired, there might be more travel in your future which means your big family home might be empty for long periods of time. It might be a good plan to consider downsizing your house to a smaller home, whether that be condo or a bungalow. There will be less maintenance as well as the extra money generated from the sale of your home, and the layout will be more convenient for your lifestyle in your golden years.
Be aware of your portfolio growth to predict financial future
Now that you are retired you will need to pay closer attention to your portfolio growth to help predict your future spending. The growth of your retirement fund is not something you may have monitored in the past, but now that you are living off of it, knowledge of its growth can help you predict your financial future.
Try something new
Retirement can be a time to discover a new passion that you didn’t have time to discover before. Take advantage of a free schedule and do something that you really want to do. Maybe join a dance class, learn pottery or even Tai Chi. Learn to speak Spanish, take up painting, sign up for spin classes, or volunteer with a cause close to your heart. Try something new and challenge your mind and body.
Retirement can be a time of rest and relaxation and personal discovery. Before you plan to retire, book an appointment to meet with your financial advisor to discuss your portfolio and ensure that your financial needs will be met in retirement.
By: The Beacon Group of Assante Financial Management Ltd.