By Evan Vitale
The biggest worry for those who are thinking about (or who are ready) to retire is having the means to live comfortably and handle expenses.
Retirement planning is extremely important so that you can properly plan for the type of retirement and enjoyment that you want to have. Some considerations in planning your retirement is to calculate how you want to live during your retirement years. For example, consider:
- How well do you want to live during retirement?
- Where do you want to live? If your mortgage is paid in full, you could remain at your current location or sell and buy a smaller house, condo, etc., in a more desirable area.
- Do you want to travel? A cruise every year? Trips to see family members during the holidays? Or just casual getaways to the beach every now and then?
- How much will your hobbies cost? Consider your expenses for sewing, materials, sports activities such as golf course green fees or entry costs for chess tournaments, etc.
- Do you have loan or credit card debts? Will these be paid off before you retire? Can you afford to carry a credit card debt during retirement and have the financial ability to pay off your debt?
- Are you currently renting? Paying for an automobile? Are there any other monthly expenses that you haven’t considered?
- Health insurance expenses? Which ones aren’t covered by your current plan (dental, optical, etc.)?
- Don’t forget any unexpected expenses such as emergency medical care, car repairs, etc.
Once you are able to adequately answer these questions, then you will have a better handle on what you’ll expect during your retirement years.
Even if you are planning to retire in the next 5-10 years, you should start saving as much money has you can right now. It’s never too late to begin to save for your retirement years.