As you start preparing to downshift your life to a slower pace — or at least a different pace — and enter your retirement years, you’ll want to consider the best way to make sure your money doesn’t run out.
While there are never any guarantees, proper retirement planning and careful money management will help you retire with confidence and enough assets to comfortably live for the rest of your life.
Use these suggestions to stay on track!
● Know how much money you will need to retire. You should know how much money you need to have in the bank to draw from regularly during retirement. If you have been working and planning for retirement for a while, you probably already know this number already. However, if you don’t know how much you’ll need to live comfortably during those years, a no-cost visit with a IMAFS retirement advisor is a great place to start!
● Know how to accumulate the money you need. Once you know the amount you need, the next step is to create a detailed plan on how to reach that goal. How much do you need to save each year? How should your retirement assets be invested to balance growth and volatility? If these concepts sound like a foreign language to you, a financial advisor for physicians can help make sense of it all and help you understand how it applies to your life.
● Increase savings when your income increases. As you get increases in income, make sure you are also increasing what you contribute to your retirement accounts. This includes raises, promotions, inheritances, and other increases in income, whether expected or unexpected. If you set up your retirement savings as a percentage of all your income, this is easy. Additionally, you can automatically increase your contributions to qualified plans like your 401K with a yearly percentage increase. When you have maxed out 401(k)s and IRAs, taxable accounts can provide long-term investment growth as well. The sooner you start, the more your money will have the chance to compound, which will make a huge difference over time.
● Get regular check-ups. Just as you go to the doctor or dentist regularly, or take your car in for regular maintenance, you should meet with your financial advisor regularly. A professional second set of eyes can help you stay on track and make sure you are making optimal financial decisions.
● Consider some work during retirement. Many retirees these days are semi-retired, continuing some employment in a more flexible capacity. Most are driven by the need to contribute and find fulfillment than financial needs, although it can certainly be financially beneficial. Make sure to consider how you will find enjoyment and fulfillment in retirement, as some retirees can struggle with the transition.
● Have an exit plan. Your retirement plan should include not only how to start, but how to finish as well. When will you retire? Your retirement age has a larger effect on the sustainability of your retirement income than almost any other decision. Where will you live? The cost of living can fluctuate greatly from place to place Will you still have a mortgage? How often will you want to travel to see kids and grandkids? Will you be doing volunteer work like a church mission or other humanitarian opportunities? Having ideas of what these answers could be will help you create the most effective financial plan.
● Smile — it’s all good! All of your retirement planning, and your retirement itself, is part of your grand adventure. Everyone should be able to retire and continue to enjoy life at its fullest. A wonderful retirement is possible, but planning is key. With the right direction and tools, you can have the retirement you envision for yourself.
IMAFS, one of the leading financing planning firms for physicians in Boise, ID, and the surrounding areas, is here to help you reach your dreams and goals. To schedule a no-cost investment and retirement planning consultation tailored to your personal financial goals, contact the fee-only medical financial advisors at 208-504-1736.