Why You Must Plan Early To Retire Comfortably

Retire early

If you’re procrastinating over retirement planning, then you could try this right-brained approach: befriend your future self.

How do you do it? Visualize. Imagine who you will be. Think about where you will be. What needs will you have? What desires will you still want to fulfill?

By thinking about your retirement in this way, you’ll quit making excuses why you’re too busy to start making plans for retirement.

Once you’re motivated about the future, then begin researching, brainstorming, and designing a financial plan to make your retirement the most rewarding years of your life.

Take Care of Your Children

Planning for your future includes making financial plans for your children. This could include paying for your own cremation. Planning ahead will save your children the shock of both dealing with the grief of your absence and the financial dilemma of how to get the money to cover your final requests. PolicyZip.com explains all about the arrangements necessary to make for a cremation.

Practice Preventative Medicine

When planning your retirement, it’s easy enough to make it all about the money, but if you don’t think about your health, then that is where most of the money that you’ve struggled to earn will go.

Health care costs are expensive, and a simple, effective way to slash your bill is to practice preventative medicine.

Organize Your Finances

The sooner you organize your finances, the easier it will be to have the money you’ll need during your retirement years.

Think of finances as falling into five integrated plans:

a. Your earning plans.

Regardless of how much you’re earning, think about ways that you could earn more.

Here are some ideas to increase your income:

  • Go back to school if you’re in a line of work where higher credentials will increase your earning ability.
  • Double down on your productivity at your current job if you think there is a good chance of a promotion.
  • Switch to a better paying job if you’re stuck in a job that appears to offer little to no growth opportunities.

b. Your spending plans.

Although the cost of living may be high and you may be living as frugally as possible, think of ways to get the same quality of goods at a cheaper price. For instance, buying stuff online may be cheaper for some consumer products. When you buy from a retailer, they are charging more because they have higher overheads.

c. Your savings plans.

Savings can be difficult, but you can save by asking that a percentage of your salary be automatically sent to a savings account.

d. Your investing plans.

Study one type of investment, make small bets, and learn how the market works. For instance, consider buying stocks.

e. Your retirement plans.

  • Retirement planning can be complex, but here are at least 3 things that you should do to start heading in the right direction:
  • Open up an IRA or a 401 (k) plan and make yearly contributions to it.
  • Postpone taking out social security until age 70 if possible as that’s when you’ll receive the highest monthly payments.
  • Downsize if you bought a large house to raise your family but you don’t need to keep paying so much in maintenance for space that you no longer need.

In conclusion, if you’re particularly busy, especially with work and family obligations, it can be difficult to justify the time and effort it takes to plan for your retirement, but if you are willing to do some focused thinking about it now, you will be able to enjoy a comfortable retirement.

Anum

Anum Yoon is the founder and editor of Current on Currency. She loves all things personal finance, which is why you'll find her work all over the PF blogosphere.

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