By Evan Vitale
No matter your age, you should never put off thinking about – and planning for – your retirement. For many, the idea can become too overwhelming that many people put it off until a later time.
However, instead of a delay, now is definitely the time to make some decisions that will help ensure that you have a nice nest egg so you’ll be able to live comfortably down the road.
When you retire will have an impact on how long you’ll need to plan on living on your savings. In addition, how much you’ll spend has a greater impact on how much money you will need to save. For example, will you have your mortgage paid off by the time you retire? If you don’t have to worry about a mortgage payment, that will be a huge financial weight off your shoulders. If you won’t have your mortgage paid off, then you may have to consider selling your house for more income.
Of course, many people decide to sell their home because they want to move to a warmer environment (i.e. Florida) or live closer to children and grandchildren. If that’s the case, you’ll need to consider the cost of living at your new location.
In addition, some people like to travel when they retire. If that’s the case, you’ll need to factor in vacations; hotels and meals away from home.
Other considerations include gifts for the grandchildren, eating out, club memberships – all of these are things we would probably enjoy when we reach retirement age, but can we afford them? Are we currently good at setting up a budget and sticking to it?
In order to reach your retirement goals, you’ll definitely need a strong financial plan. Talk to your banker and meet with a financial planner to begin investigating what needs to happen in order for you to plan for your retirement and reach your retirement financial goals.