Summer is here, and whether you’re going to relax, visit friends, or take a trip, it’s important to consider how you will spend your time. As a kid, you probably looked forward to summer vacations where you had a break from responsibilities and your time was your own. Retirement is similar, except that it lasts for decades instead of months. Summer is definitely a time to relax, but it’s also the perfect time to start preparing for retirement.
What Will You Do?
On average, we spend more time every year planning for vacations than planning for retirement – and retirement is much longer than any vacation you will take. Conveniently, you can start preparing for retirement while vacationing: If you and your spouse are traveling together, use the hours on the plane or highway to start discussing what you want your retirement to look like, your goals, and general timeline. If you have time off, you can “practice” retirement by trying out new activities like volunteering, spending more time with friends and family, or picking up a new or forgotten hobby.
How Will You Afford It?
Think about how you afford your current lifestyle: Do you have a specific budget? How much income do you need to maintain it? Planning for how you will afford retirement is a detailed process, which is why it helps to have a professional at your side. Start thinking about how much your desired lifestyle in retirement will cost you, and then figure out what your sources of income are and how much they will produce. Begin thinking about when you will claim Social Security, and how you will use your retirement accounts.
Think of all the details that go into planning a vacation: There are the travel arrangements, the hotel, activities, and setting a budget. While it’s certainly important to enjoy both vacation and retirement, the stakes are much higher when it comes to retirement and there are even more elements that go into planning this 30-plus year vacation.
We can help you create a plan for the longest vacation of your life. We’ll take your unique retirement goals into account, and help you put all the pieces of the puzzle together. If you’re taking the time to plan a vacation this summer, consider also taking the time to come in for a no cost, no obligation financial review.