Planning for a long and prosperous retirement these days is no longer just about money; because of the recession, boomers are needing to reboot their retirement plans. Here are some tips to help get you on the right track again:
1. Get healthy. Exercise more, eat better and take advantage of any wellness programs offered by your employer. This should take priority even over saving more money, since significantly improving your physical health will reduce the chances you will need expensive healthcare procedures.
2. Pay off debt. Pay off as many of your credit cards as possible and consider refinancing your house to take advantage of historic low mortgage rates. Research shows that people who reduce or eliminate their debt prior to retirement do a lot better than those who carry debt into retirement.
3. Spend less. Prioritize what you need versus what you want and focus on spending just enough to meet your needs.
4. Save more. Add more to your 401(k) or IRA; increasing your savings by just 1 to 2% of your pay can make a noticeable difference to your savings without impacting your current lifestyle.
5. Maintain your network. Retirees with a large network of friends and family do better in retirement and live longer. Be sure you continue to nurture your network as you ease your way into retirement.
6. Continue working. Most boomers will need to work at least part-time once they retire. Start investigating the kind of work you might enjoy doing. If you earn enough to cover your daily expenses, you won’t have to touch savings, which can continue to grow until you are fully retired.
If you’d like to learn more about how the new tax laws will affect you, call our office today to schedule a time for us to sit down and talk. We normally charge $750 for a Family Wealth Planning Session, but because this planning is so important, I’ve made space for the next two people who mention this article to have a complete planning session at no charge. Call today and mention this article.