Retirement is a time of excitement and anticipation for many people. But with so many things to think about, it can be easy to forget some important questions that will affect your financial situation after you retire. Below, I've listed a few questions that may be prudent to receive the answers to before you enter into that stage of life:
· What is my financial plan?
Many people don't have a financial plan, but it's important to make sure that YOU do. Having a plan can help you determine what assets and income sources you need to retire in the manner that you desire. It will also help keep your spending under control while providing an estimate of when you'll reach your goals.
· How much will my retirement income be?
Retirement is a time to relax, but it can also be stressful when you're not sure how much money you'll have to live on. The amount of retirement income you receive will depend on your current employment situation, the type of pension plan that you have and whether or not you are eligible for Social Security benefits.
· What assets do I have?
Your assets include anything of value that you own, such as property, savings and investments. If you have a pension plan in addition to Social Security, it's important to know how much money you might receive from each source.
· How much are my current expenses?
Calculate your current monthly expenses and see if they're more than what you could afford during retirement. If so, consider making some changes before retiring so that you can live comfortably on less income while enjoying your golden years.
· How long will my current assets last?
You may have a certain amount of money you want to last during retirement, but it's important to consider how long that money could last. If your expenses are greater than your income, it will be difficult to maintain your current lifestyle for an extended period of time.
· Do I need life insurance in case something happens to me?
If you have a family to support, it's important to consider life insurance. This can help ensure that your loved ones are financially secure if something were to happen to you.
· Do I have a will or Estate Plan?
If you don't have a will or estate plan, it's important to get one. A will can prevent family members from fighting over your estate after your death and help ensure that your assets go where they're supposed to go.
It's easier to deal with these issues now, before it becomes a crisis situation. Take your time and consider what you want out of life and find a balance between financial security and a meaningful retirement. Don't be afraid to ask for help! You're not alone when it comes to retirement planning. There are many professionals who can help you create a financial plan or estate plan, including lawyers and financial planners. Find one who is experienced in working with retirees and will help you meet your needs.
Photo by Aaron Burden