20 Jun 7 Tips to Stay Focused on the Retirement Finish Line
As you go to work day in and day out, it can seem like retirement will never arrive. You may wonder if your paycheck deductions for your 401(k) or your contributions to your IRA are worth it. After all, you could really use that money right now, correct?
But down deep inside, you know that it’s worth it to save for your retirement now, and any sacrifice you’re making today will pay off in the end. So how do you stay focused on the retirement finish line?
TIP #1 Dream
This may sound silly at first, but if you don’t have a clear picture about what you’re saving and working for, it won’t be easy to stay focused on the retirement finish line.
Ladies, if you’re married, start dreaming with your husband about what you want retirement to look like. Do you want to travel? How much should your monthly income be? Do you want to sell your larger house to purchase a smaller one, or do you want to live in a condominium? If one of you gets sick, what is your plan? Brainstorm together and count the costs—literally.
If you’re a single gal, then it’s just as important for you to dream. Get your journal and start writing. Pull out your scrapbooking goodies and create a dream board with photos, phrases, and goals that you can look at often to stay motivated.
TIP #2 Stay Healthy
Health care costs sure can derail even the best retirement plans, so do whatever you can to stay healthy and active. If you’re fairly healthy, then keep it that way; if you have some health issues, it’s time to learn what you can do to improve your situation. Remember, there are so many resources online and in local communities to help you maintain and even improve your health.
Consider joining a community walking group or yoga class. This can be a great way to stay connected with or make new friends. When you’re healthy, you just feel better about your life and your future. Investing in your health will only help you stay focused on the retirement finish line because you’ll be healthy enough to enjoy it.
At the same time, take the time to understand how health care costs will impact your retirement portfolio. And remember, women, more than men, often find themselves in long-term care facilities, and this can cost a pretty penny. You can’t be sure how things will go for you in retirement, but you can consider all the possibilities and have a plan in place. Once you have an idea of how health care costs can affect your retirement, you can make adjustments and fine-tune your plan accordingly.
TIP #3 Consider Working
Most people look forward to not working at all during their retirement years, but many are surprised how much they miss the routine and purpose of working regularly. Rather than not working at all, consider working part time at a low-key job or volunteering regularly. Staying active not only helps you stay connected with others but also helps you feel like you’re still a contributing member of society—not to mention that the extra income can really help supplement your retirement plan.
TIP #4 Watch Your Finances
As you near retirement, it’s just as important as ever to keep an eye on your overall financial picture. Don’t get lazy or lethargic about your finances at this crucial time. Pay attention to and track all your expenses, and then match your spending with the appropriate investments for your goals to get the maximum return. Be sure to consult with someone who knows what they’re doing and can steer you in the right direction.
TIP #5 Have an Emergency Fund
Just because you’re retired doesn’t mean that you won’t have anymore unexpected expenses. But having an emergency fund can make it a lot easier to handle surprises because you’ve planned for unforeseen situations. Car accidents, illnesses, injuries, and car or home repairs can happen to anyone. So having some money stashed away that is easily accessible is just plain good sense.
But make sure that you don’t dip into these funds unless it’s a true emergency. It’s not meant for your granddaughter’s birthday or for Girl Scout cookies or for your weekly girls’ night out. It’s for replacing your furnace, repairing your car, or getting dental work done. This does take some discipline, but it can be done. Also, remember to repay your emergency fund as soon as possible to get it back to where it was beforehand; otherwise, it will quickly dwindle down to nothing.
TIP #6 Decide When to Claim Social Security
It’s important to consider when to collect Social Security because it will have a big impact on how much money you will receive. For example, if you elect to start collecting Social Security as soon as you’re eligible at age 62, you can expect your benefits to be significantly less than if you wait until you’re 65 or even older. The longer you wait, the more you receive.
Now, if you’re in a financial situation where you really need to start receiving Social Security benefits earlier rather than later, then do what you have to do. But if you can manage delaying when you collect, it usually works out better in the long run for both you and your family. Click here to obtain more information on claiming Social Security.
TIP #7 Consult with a Financial Professional
Last, but certainly not least, seek help from a trusted financial professional to make sure you’re on track. You don’t have to go it alone as you stay focused on the retirement finish line. Ask friends and family who they use for their financial needs. There are competent and caring financial advisors like the ones at www.russellandcompany.com all over the country. Rather than hoping you’re doing the right things to plan for your retirement, why not consult with someone who’s made it their life mission to help people reach their retirement goals? It sure beats chancing it.
You can make a big difference in your retirement future by making small changes. And the sooner you start, the better off you’ll be.
This newsletter was prepared by a third party company to be used on the Russell & Company and Simple Money Tips for Women websites.
