By Cynthia Barnett
Let’s be completely honest. Everyone has their own dreams and
expectations about retirement. Upon retirement, some folks
to travel around the world while others simply plan to take
excursions to their local beach. Whatever the retirement plan
that you may have, being able to implement your goals takes a
certain degree of financial security. The problem however is
that financial security does not just happen but requires
careful planning, commitment and yes, money.
To be a successful retiree, you must successfully transition
yourself into retirement in order to meet your retirement
objectives. In addition, you have to plan the amount of money
you need and what you want to accomplish with your savings.
After all, you’ll likely spend 35+ years in retirement so you
must start planning now. In this article, we will discuss 10
ways that you can successfully transition yourself into
retirement. They are as follows:
1. Debt Reduction - Make sure that you do not carry your debts
into retirement. Therefore, commit yourself to paying off as
much of your debts as you possibly can. Eliminate car
credit card debts, personal loans, etc. Do what you have to do
now to squash debt and make sure that you don’t obtain any new
2. Have a Nest Egg of Emergency Funds - Have enough liquid
funds in hand to cover at least a few months of expenses,
without eating into your investments. Be prepared for the
unexpected expenses while you transition into retirement.
all, emergencies will certainly come up but if you have a
certain amount of savings, you won’t have to worry about them.
3. Adequate Insurance Coverage - Make sure that you have
adequate insurance to cover your life, health, homeowners',
auto insurance policies. Reassess your insurance needs on a
yearly basis to ensure that they suit your retirement needs.
open to making changes as needed and check out your employer’s
retirement coverage. Many of folks have been unpleasantly
surprised to learn that their employers will no longer cover
their medical expenses after they retire. So, if you find out
now, you can take the necessary steps to protect yourself and
4. Retirement Income Plan - To ensure that you don’t outlive
your assets, develop a retirement income plan that includes
your income and expenses. Keep track of your current expenses
and cut back as needed.
5. Social Security Benefits - The rules for benefits are
complex, so talk to a Social Security representative a year
before you plan to retire. By doing this, you’ll be able to
understand your benefits and how much you’re covered. In
addition, you should apply for social security three months
before you want to start collecting your benefits or three
months before your 65th birthday.
6. Contribute to a Savings Plan - If your employer offers a
tax-sheltered savings plan (such as a 401K), make sure that
contribute as much as you can. Not only will this
lower your taxes but will also make huge difference in your
financial security due to the magic of compounded interest.
7. Review Wills and Trusts - Make sure that you have a valid
will and/or trust. Not only will this protect your assets but
will give you peace of mind.
8. Invest in IRA - By putting money in an Individual
Account (IRA), you’ll cleverly delay paying taxes on
earnings. If you invest $2,000 in IRA at 4% when you are 30,
will grow to $112,170 by the time you are 60. Now that’s a lot
of moola for simply being smart!
9. Follow Basic Investment Principles - Just remember that how
much you have for retirement depends on the type of
you make now. Learn how to multiply your savings using mutual
funds, stocks, bonds, etc. Consult a financial advisor for
10. Know About Medicare - Find out when it is appropriate to
apply for Medicare and then apply. The Medicare application
process and premiums may vary, depending on your age and
whether or not you are receiving Social Security by being
of the type of Medicare you may qualify, you’ll be ahead of
game. For instance, the two parts of Medicare are:
- Hospital insurance, which generally you do not pay. It helps
to pay for hospital, hospice, and home health care.
- Medical insurance, which you pay. It helps pay for doctors,
outpatient care, and other medical services.
Follow our suggested ten steps and you’ll not only improve
mental health but you’ll also transition yourself into a happy
and financially secure retirement.
About The Author: Dr. Cynthia Barnett is a ”refired” educator
who had reinvented her life moving from the school house to an
entrepreneurial venue.. She is the author of “Stop Singing the
Blues: 10 Powerful Strategies for Hitting the high Notes in
Your Life, and RE-FIRE, Don’t Retire: 7 Secrets of Highly
Successful Retirees She was featured by Time magazine for
article on women in mid-life who have reinvented themselves.
you are ready to “RE-FIRE” your life sign up for my free 7 day
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