Your days of working are over. Now you have to figure out a new financial plan. The nest egg that you have accumulated through your pre-retirement years will determine the type of life you are able to live post-retirement. The more disciplined with saving you have been in your younger years, the more comfortably you should be able to live in your golden years.
If you spent the younger days of your life thinking that you would never make it past 60, yet now 60 has come and gone and you’re still going strong, here are some tips on making the most of your retirement fund.
Rate of Withdrawal
It is very important to determine a safe and conservative rate of withdrawal to ensure that there are adequate funds for your post-retirement years. Determining a safe rate of withdrawal will ensure that you will not run out of money. You must figure out a happy medium between being frugal and living enjoyably. This might require life changes such as home downsizing and reducing or eliminating spending on luxury items and impulse buying.
In previous life stages it was important to save and accrue wealth. Now it is time to protect the wealth that you have accumulated throughout your life. This might require reallocating your assets to safer investments. Instead of having high growth investments, it’s now time to invest in more well-established blue chip firms that pay dividends consistently. This will help protect your wealth and guarantee future cash flow.
After retirement, if you are looking for ways to fill your newly gained free time, consider working at a different capacity than before. Working part-time as a consultant or entering a different career path altogether is a great way to fill your time and gain some extra income. This allows you to continue accumulating wealth and live a more comfortable life. It will also keep you physically and mentally active. Finally, if you decide to work, you could be eligible to make use of your employer’s health insurance benefits to further reduce your personal expenses.
With so much newly found free time, it would be easy to go through all of your money in just a short while. Set your new budget and stay on track!
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