3 Questions to Plan for an Amazing Retirement
When it comes to planning for retirement, there are a lot of things to take into account. One of the most important is how much money you’ll need to have saved up. You’ll also need to think about where you want to retire, and what kind of lifestyle you want to lead.
One of the most important things is to start saving for retirement as early as possible. You should also make sure that your retirement savings are invested wisely so that they will grow over time. This will help ensure that you have enough money to live comfortably in retirement.
How much do you need to save to make that happen? The answer: it depends! Here are a few questions you need to ask yourself to help plan for an amazing retirement.
How do you want to spend your time in retirement?
One of the great things about retirement is that you get to choose how you spend your time. You can relax and take it easy, or you can choose to stay busy and keep active. It’s up to you!
Some people choose to travel during their retirement years. This can be a great way to see the world and experience new things. Others choose to stay home and spend time with their families. No matter what you decide to do, retirement is a time for you to do what you want.
That being said, plan ahead! If you know you’re going to be traveling quite a bit, think about where you’d like to go and for how long. Approximately how much money will you need to save to live comfortably and travel?
If you plan on being a homebody, what does that look like? Will you have only one residence, or are you planning on purchasing a vacation home? Making a retirement vision board can be an excellent exercise to help you conceptualize how you’d like to spend your time.
What will my expenses look like?
When planning for retirement, it’s important to think about how your expenses might change. For example, you’ll likely have fewer expenses than you did when you were working. However, there may be some new expenses you’ll need to budget for, such as healthcare costs.
Healthcare costs can be a major expense. That’s why it’s important to start saving for healthcare costs as early as possible. You can do this by contributing to a health savings account or a Medicare supplement plan.
Another big expense in retirement is housing costs. If you’re planning on downsizing or moving to a different location, make sure you budget for that accordingly.
And don’t forget about taxes! Your tax bill may be different in retirement. For example, you may no longer have to pay taxes on your Social Security income. You may also be able to deduct some of your healthcare costs from your taxable income. Be sure to consult with a tax professional to find out how your taxes will change in retirement.
One thing that will likely stay the same is the tax rate on your retirement savings withdrawals. This means that you should take into account how much you’ll need to withdrawal each year to meet your expenses.
Will I be leaving a legacy or inheritance?
Leaving a legacy or inheritance is one of the most important things you can do for your loved ones. By setting aside money for your heirs, you’re ensuring that they will be taken care of financially after you’re gone.
There are a few different ways to go about leaving a legacy or inheritance. One is to create a trust fund that will provide money to your heirs on a regular basis. Another is to make a will and designate specific assets to your heirs.
Whatever route you choose, it’s important to start planning for your legacy or inheritance as early as possible. This will give you plenty of time to save up the money you need.
And don’t forget to consult with a financial advisor to make sure your plan is as effective as possible! A financial advisor can help you find the right retirement savings vehicles and investment options to ensure a comfortable retirement.
Need some more guidance?
PowHerhouse Money has options for you, whether you’re a DIYer or you’d like one-on-one help.
For our DIYers out there, our Money Bitch Bootcamp has an entire section on planning for an amazing retirement. It also provides you with excellent guidance on how to achieve all of your money goals, like saving, spending, and paying down debt, and investing and insurance.
If you’re interested in getting comprehensive, personalized help, we’d love to meet you! Book a discovery call and we’ll chat about all of your retirement goals and how to make them happen.