10 Tips to prepare for retirement
It might be decades away or it might be around the corner. Either way, retirement requires serious planning and foresight. The sooner you start, the better the chances that you will be able to achieve your goals.
Here is our top ten list of things to do to be ready for the big day:
1. Decide what you want
What are you hoping for in retirement? Don’t copy other people’s bucket lists; rather, think for yourself. How do you see yourself spending your time? Test out some of the options that seem attractive to you; you might find that you don’t enjoy them as much as you expected to.
2. Consider alternate scenarios
You will want to have several possible scenarios in mind. Your family relationships, your health and your ambitions are all susceptible to change. Nobody knows the future, so remember that in all your plans you will need a degree of flexibility. Watch our How much is enough for a comfortable retirement? webinar on-demand for more information.
3. Make a plan
Do the numbers. How much will this lifestyle cost? How will you save enough? Consider adding to your savings and diversifying your investments.
4. Prepare for long life
As you work the numbers, remember that you might be retired for a very long time. Average life expectancy is higher than ever, and those numbers are brought down significantly by tragic early deaths. Many people live well beyond age 90.
5. Expect the unexpected
Don’t forget that many surprises in life can turn out to be expensive. Think about the different types of assistance you might need, including health coverage, travel insurance, etc.
6. Structure with intelligence
There is often more than one way to set up your finances. Some are more beneficial in the short term while others work better in the long term. Remember to look into all your options before committing to a plan that may end up being detrimental to your financial health.
7. Organize your documents
It will be easier to relax when you know that your estate has been structured the way you want it. Don’t forget to assign Powers of Attorney and medical care directives.
8. Be healthy
Staying healthy and fit will enable you to enjoy your retirement more and help you to reduce your medical bills.
9. Stick to your plan
If your investment values plummet or the economy takes a turn for the worse while you’re still years away from retirement, be patient. Things will probably take another turn, this time for the better.
We know that market volatility can be off-putting to investors who might be considering equity markets as an investment option. But depending on your financial goals and time frame, market volatility doesn’t need to be a precluding factor when making decisions about your investments. Learn more about holding tight during market volatility here.
10. Get help
It is unlikely that you are knowledgeable enough in every area to make all the right decisions by yourself. Get help. Trust the professionals at Modoras. They know what they’re doing.
IMPORTANT INFORMATION: This blog has been prepared by Modoras Pty. Ltd. ABN 86 068 034 908 an Australian Financial Services and Credit Licences (No. 233209), located at Level 3, 50-56 Sanders St, Upper Mt Gravatt Q 4122. The information and opinions contained in this fact sheet are general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individuals personal circumstances have been taken into consideration for the preparation of this material. Any individual making a decision to buy, sell or hold any particular financial product should make their own assessment taking into account their own particular circumstances. The information and opinions herein do not constitute any recommendation to purchase, sell or hold any particular financial product. Modoras Pty. Ltd. recommends that no financial product or financial service be acquired or disposed of or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this fact sheet can change without notice. Modoras Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication.