We will discuss 5 questions and answers to help you assess if you are ready for retirement. Now, question 1 -
What does your ideal retirement lifestyle look like?
This is a good time to dream big and visualize what you would like be doing once you retire. This could include travel, moving to a different location, doing charity and community service work or any number of other activities, or maybe even quitting your job and starting a business in an area you are passionate about.
It is important to understand how much your desired retirement lifestyle will cost. While there are rules of thumb regarding the percentage of your pre-retirement income, everyone is different. Further, this spending is not linear. Often, the earlier years of retirement tend to be more active in terms of things like travel, but these types of activities might slow down a bit as people age. The best approach is to do a budget factoring in things like where you will live, will you be downsizing (or upsizing) your house, your activities and other factors. In short, you need to prepare a retirement budget.
A good article from Investopedia discusses 6 phases of retirement life.
We will discuss the second question in next blog post.
What does your ideal retirement lifestyle look like?
This is a good time to dream big and visualize what you would like be doing once you retire. This could include travel, moving to a different location, doing charity and community service work or any number of other activities, or maybe even quitting your job and starting a business in an area you are passionate about.
It is important to understand how much your desired retirement lifestyle will cost. While there are rules of thumb regarding the percentage of your pre-retirement income, everyone is different. Further, this spending is not linear. Often, the earlier years of retirement tend to be more active in terms of things like travel, but these types of activities might slow down a bit as people age. The best approach is to do a budget factoring in things like where you will live, will you be downsizing (or upsizing) your house, your activities and other factors. In short, you need to prepare a retirement budget.
A good article from Investopedia discusses 6 phases of retirement life.
We will discuss the second question in next blog post.
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