9 Bits of Personal Finance Advice that will Land You on Happy-Ever-After Retirement

If you have plenty of savings set aside, and you’re set for life and your retirement, then that’s great news. Of course, since this is definitely a new chapter in your life, there are a number of things you have to truly prepare for.

First is to ensure that one most important thing: do you really have enough funds to last you a lifetime, even if you no longer turn in for work every day or cash in your paycheck every two weeks? If yes, then all you need is to find out how you can grow your sources and manage your finances to survive.

One way to grow your funds when you retire is to invest. If that’s not you, then why not an insurance plan? Does either of this two describe happily-ever-after retirement for you?

Here is some advice you can look over to help you find your happy-ever-after retirement:

Save More than You Need

Unless the figure reaches billions or trillions, saving a certain amount—say half a million or even half of that—for your future retirement isn’t all that reliable. There’s inflation for one. And economic downturns. Market changes. So it’s pretty hard to figure out how much you‘ll need after you retire. This becomes a problem when people set too little money aside. They think it’ll be enough only to find out later that they should’ve made allowances for global economic—and local market—factors. Because the measure of what’s enough isn’t constant. But if you save plenty, you won’t need to fear any of these at all.

Explore All Opportunities to Grow Your Money

Want to earn more to save more? If you think you aren’t saving enough, maybe it’s time you looked for alternative sources of income. Go for a racket, a side job, a project. What’s your income target? Do you even have one? You should. Just make sure that whatever job you take on the side won’t interfere with the regular work you do. Manage your time wisely so you can effectively do all the work you’ve tasked yourself with—and still have enough time to enjoy the rest of the day and night.

Invest via Automatic

One of the best ways to boost your savings when you retire is to automate your investments. Set up an IRA account to which you can transfer a portion of your money. Once your money is diverted the to a retirement account, the next thing you need to do is keep it safe. Stop yourself from withdrawing from the account or from draining it dry.

Determine How Much You Have

Always monitor your expenses. Track how much you currently have, and how much more—or less—you can spend. Then come up with a plan. What do you intend to do with your remaining balance or savings? What’s the target, the goal, the big purchase? Is it an investment—maybe an insurance plan—or new business venture? Visualise how far into the project you want to go. And if you’re all set and ready—if the plan is feasible financially, then go for it.

Consider Investing in a Taxable Brokerage Account

A taxable brokerage account is a mix of mutual funds, bonds, and stocks. It gives you access to all current earnings anytime—at no charge. You may also consider the buy-and-hold strategy or keep from cashing in the investments for an entire year to be able to get lower long-term capital gains tax. This will reduce your tax exposure. Read on the topic extensively to know more about your possible investment options with brokerage accounts.

Set a Separate Account for Your Retirement Fund

If your goal is to live comfortably in your retirement, then you shouldn’t neglect your retirement fund. People think having one savings account is enough. However, the future has a way of throwing unexpected things—and expenses—at us. And for one reason or another, you might find yourself withdrawing from that savings account to address expenses that weren’t originally part of your budget.

This is why it’s a good idea to set a different account for your retirement fund. Otherwise, you could end up draining the fund dry every few years, leaving you with empty pockets by the time your retirement comes around.

Look for Other Investment Options

Looking for investments can be challenging especially if you don’t know a thing about them. If you’re wary about what steps to take, read up. Study. Learn and teach yourself what you need to know. This way, you have more control and be in a better position to decide on which investment type suits you best.

Delay Your Social Security Checks

The longer you delay your social security checks, the more you earn. You will see an increase in pay-out when you delay your check yearly. This is one option you could go for if you want to pad your retirement and income savings.

Maintain a Simple Lifestyle

This, by far, is the best advice of all. Living is easy, if you have enough savings to see you through the long, retirement years. One way to ensure that your savings last that long is to spend only on whatever is important.

Do you really need that bag? The thirty shoes? The clothes you wear only a couple of times a year? If your answer is a resounding “no,” you know what to do.

Discard everything you don’t need and no longer use—give it to someone else, to charity or sell everything in a garage sale and earn a quick buck or two. There are plenty of ways you could cut down on unnecessary expenses. All it takes is your resolve to commit to live a simple life.

Ultimately, happy-ever-after-retirement means true financial freedom, one that comes not from having millions in the bank—though that certainly helps—but from planning, researching about, and having greater control over your personal finances at all possible times.

Author’s box

Ian G. Elbanbuena is a blogger and infopreneur who writes on various topics mainly personal finance, self-improvement, business and marketing. At present he works on behalf of Compare Hero, Malaysia’s leading comparison website. This portal helps individuals in making the best decision by comparing rates from different  insurance plan providers.

 

Tags: Finance, Investing, Investment, Personal Finance, Retirement, retirement planning, Social Security

Category: Retirement