Getting Ready For Retirement? Five Ways to Prepare!
by: Kerry Hook
No matter what your age, you should be getting ready for retirement. Its one of the things that can easily fall to the bottom of your priority list, but being prepared especially financially – can make a huge difference in how well you live during your retirement years.
The earliest thing you should do to prepare for your retirement is to max out your retirement savings plan. Some employers will even match your contribution, so it is extremely unwise not to take advantage of this benefit if you have it. Be sure to sit down with an expert, (usually the one that manages the retirement plans through your workplace) to discuss the level of risk that is associated with each type of plan that is offered. Its ok to have higher risk if you are young, but as you approach middle age or older, youll want to shift the level of risk to a lower level. Have you reviewed your plans lately? Do you need to change plans to adjust the risk level? Perhaps the saddest thing to see is people who are about to retire, but have lost considerable value in their plans because the stock market fell and they were heavily invested in it. The mistake they made was to set it and forget it. They never reviewed the plan that they set up when they were much younger and risk was acceptable. Dont let this be your mistake.
Another tip for getting ready for retirement is to create a Plan B. Plan B is a back-up plan that will help you have an income should your main retirement savings suffer from stock market crashes, or a massive devaluing of the dollar. Can you think of a way to create a second source of income? This could be from consulting work, writing or online marketing. If you can develop multiple streams of income, then you will be in good position to weather the storms of an unpredictable economy or retirement fund.
Downsizing is the third thing that will help you prepare for retirement. A smaller house, fewer possession and less commitments will help you enjoy your retirement years considerably. Why? Less is more. With a smaller home, you will have lower costs for heat, air and water so youll save money. You will also spend less time cleaning and maintaining your home, so you have more time to pursue hobbies, extra income or travel. If freedom in retirement is your goal, the less is definitely more.
Developing a budget is the fourth thing that you can do to prepare for retirement, but its a great idea for everyone at any time. Simply keep track of all your expenses for one month. Write down everything every penny that you spend. Take a long, hard look at where your money is going. How much is being spent mindlessly? How much is being wasted? Where can you cut back?
Learning to live frugally is the final thing that you can do to get ready for retirement and like budgeting, it is a good idea for everyone. What is frugal living? It doesnt mean cheap. You may be wondering Whats the difference? Well, cheap is when you stop giving gifts altogether just to save money, but a frugal choice is to give thoughtful, low cost gifts that still have great meaning to your recipients.
Living frugally just means finding ways to do more with less, economizing and cutting back. It means seeking out the lower cost alternative, which can often be much better for your health. Reducing the amount that you eat out by cooking at home will save you money and calories. Preparing your own home-cooked, quality meals rather than using pre-packaged meals will expose you to fewer preservatives and all the other nasty chemicals that are hidden in convenience foods while saving you money. Repairing items rather than tossing them out and buying new ones is another example of learning to live frugally.
By following these five tips, you can arrive at your retirement date primed and ready to enjoy the golden years ahead!
The author invites you to visit: http://www.thefrugalretiree.com
