Choosing the Right Retirement Plan to Live Comfortably
June 2, 2022
You may have thought about your desired lifestyle in retirement, but have you laid out the right retirement plan to fit your lifestyle? When you choose a retirement plan, choosing a path to make your dream lifestyle work financially is essential.
The Right Retirement Plan
Whether you already have a Retirement Strategy set out or want to begin making concrete plans, here’s how you can pick the right plan for your needs to enjoy a comfortable, stable retirement.
Run the Numbers on What Your Chosen Lifestyle Would Cost
To live comfortably, you need to have your finances in order. Before you start dreaming of a luxurious retirement, it’s essential to understand what your chosen lifestyle would cost you and how you can make it happen through early financial planning. When running the numbers on your dream retirement, make sure to take into account the following costs:
- Up-front costs, such as the expenses involved in upgrading your home, for instance
- Monthly recurring expenses, such as mortgage payments, property tax payments, grocery bills, travel expenses, entertainment costs, and so on
- Unexpected emergency expenses, such as sudden car repairs or medical bills
Set a Timeline To Retirement and Begin Saving Soon
After calculating your planned retirement cost, it’s time to set a horizon and begin planning and saving. Having a timeline helps you ensure you save up enough money by retirement age and keeps you motivated and excited to save money. The earlier you begin putting cash away, the better! As you plan your timeline, consider the following factors:
- When you’ll want to retire and how much time you have left until then
- How much you’ll have to sock away yearly until your desired retirement age to afford your planned lifestyle
Use Smart Investments and Strategies To Boost Your Savings
In addition to putting money away, helping your money grow is a simple yet effective way to boost your finances and help ensure a truly comfortable retirement. The key is to be intelligent and strategic about where you place your funds. You can manage your accounts yourself or work with a financial professional to hedge your bets. When looking for ways to boost your retirement savings, always remember to:
- Reduce investment risk the closer you get to retirement
- Place some savings in high-yield accounts or Certificates of Deposit
- Diversify to avoid keeping too much of your money all in one place
Picking a Retirement Strategy that can help you realistically achieve the type of retirement lifestyle you desire is essential. If you want to live comfortably, enjoy financial stability, and live out your golden years the way you want, heed these tips on choosing the right retirement plan for you.
About 1891 Financial Life
At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.