Retiring Successfully and How to Overcome Unforeseen Emergencies

By Ben Mosebach

Not everyone is as concerned about the amount of money they have as they are about their overall happiness, but some people tend to relate the two. While we all know the saying “Money can’t buy happiness”, it does buy you a comfortable lifestyle while you have it. If you want to continue that lifestyle into retirement there are a few steps you can take to ensure that you have what you need when you finally get that time to yourself.

These are just starting points to get you in the right direction, but with any retirement plan you need to consult a certified financial and retirement advisor as to find the best way to save for your unique financial needs.

Step One: Start building a detailed record of your everyday spending and monthly financial commitments. Label everything necessary or discretionary as to separate what you will bring into retirement with you and what you’ll be leaving behind.

Step Two: Figure out what your sources of guaranteed income will be in retirement. Do you have a pension, 401(k), or Social Security payments in the future? Add up how much you will receive every month once you stop working. Know what you’ll have to rely on so that you can build your budget when the time comes.

Step Three: Look at how much you’re spending now and compare it to how you’ll be receiving in retirement payments and benefits. How close are those numbers? The closer they are, the better off you’ll be. The ultimate goal is to keep your lifestyle in retirement, or be able to achieve that with little change or effort.Retirement Research Group is dedicated to helping plan sponsors and businesses connect with the right financial and retirement advisors to achieve their goals.

Step Four: Be prepared to set aside money as it comes in from guaranteed payments. By living beneath your means you’re able to put money away in case of emergencies such as health-care, home repairs, or other events that you are not able to predict. If you’re married or have a spouse and they no longer receive any retirement payment for any reason, the money you’ve set aside can act as a buffer between financial obligations and the money you’ll continue to receive.

Step Five: If you’re not receiving enough every month in retirement to pay for your lifestyle, be prepared to downsize if necessary. Remember, the goal is to have the amount of your monthly retirement payments match your financial obligations as closely as possible. You need to be able to pay your bills without being in the red at all times.

While working with someone, such as a certified financial and retirement advisor, closely to mold your financial plans to your life goals keep in mind that retirement means you’re no longer working and counting on that monthly paycheck. It’s up to you to create that new paycheck once you leave the workforce, and starting to plan that now will be the strong foundation you need when you’re ready to retire into comfort and relaxation.