How to be Financially Stable in Your Retirement
Retirement can be one of the greatest times of your life. No more anxiety about having to go into the office every day; no more overtime or added stress that comes with a life mostly lived between 9 and 5. Now, you have all that time to yourself, and no one’s around to stop you.
But for some, retirement can be rough – a period of angst and apprehension over finances and how much will eventually be left. For many, retirement begins at around age 65, but how long it lasts depends on many factors. What if a person lives past 100? How are they supposed to make all their money last?
Here are five tips designed to make your retirement a period of ease and tranquility:
- Take care of all debts before retiring.
The last thing you want during your retirement is to worry, which is why you should pay off all debt before you stop working. Otherwise, you’re entering an arena of lesser income while still tied to several financial responsibilities. Retirement means freedom, and freedom means never having to answer to anybody, so if you’re hoping to make the transition to retirement as peaceful as possible, make sure those added bills get taken care of beforehand.
- Know when to say “no.”
Most retirees look like piggy banks to their families, and you may have times when your children or grand-children want a piece of the action. It’s okay to give in at times, but the money you’ve built up over time is what you’re using to survive, and you have a right to say no if you’re in a tight spot. With so many fantastic moments waiting around the corner, wanting to preserve yourself and your finances isn’t a crime.
- Buy an annuity.
Sometimes, getting a bunch of money all at once leads to trouble. That’s why so many lottery winners deplete their earnings so quickly; it’s hard to resist temptation. While retiring isn’t the same as winning a sweepstakes, it can lead to financial freedom and security granted you’re careful with what you’ve earned.
The best method for approaching retirement is to buy an annuity. With an annuity plan, limits are placed on spending through set annual payments, ensuring you never overdraw or lose track of your money habits. An annuity removes some of the responsibilities you’ll face in the future by putting someone else in charge of your finances. By having set limits, you’ll never need to worry about spending more than what you already have.
- Make a financial plan for yourself.
It’s easy to get lost in the gist of retirement, but it’s also smart to think ahead. That’s why we recommend creating a spending-and-saving plan before taking the plunge. Devote some of your money to vacations with your significant other while saving another portion for any emergencies. Use some for classes and other fun things, but put a bundle aside for health purposes. It’s smart to be prepared when things go awry, and having a few bucks stored away for the unexpected is extremely important.
- Don’t leave the work force altogether.
A part-time or consulting position you can do on the side is a great way to stay active in the workforce and earn additional income while cashing in on your retirement benefits. The thought of being completely alone in the financial world is a bit scary, so if full-time has gotten to be a bit much for you, consider a part-time schedule or the occasional freelance gig before leaving the work force entirely. A little extra money here and there never hurt anyone, and it may be all you need to stay safe.
If you’re looking into retirement and need some financial advice regarding your debt situation, contact New Era Debt Solutions. We offer tips, tricks and consulting services to help you achieve the financial freedom you’ve always wanted. Give us a buzz, and let us propel you towards your retirement dreams.