How to improve your retirement. Boomers fall into one of two categories. Those who are retired, and those who are going to retire. Further these two boomer categories can be separated into two sub categories. That is those who are financially prepared to retire, and those who are not prepared. Whether we are presently retired or not. There are things we can do to make our retirement more enjoyable.
So, We’re already retired.
When it comes to retiring, we are not always in control of when we retire. Perhaps we retire for health reasons, and we are no longer able to work. Another reason for
retirement is that we may have lost our employment, and because of our age, and occupation, we find it difficult to find a job. Over the years we boomers have learned to expect the unexpected. So why should our retirement plans be any different.
Bottom line is that we may find ourselves retired, and unprepared. There are some things we can do to help ourselves become more comfortable in our retirement years.
Now that we’re retired, we have a realistic idea of what our expenses are. Now is the time to generate a workable financial plan. This includes separating our needs from our wants. In this day and age I would think most of us boomers don’t have the funds available to finance all the stuff that we want. So we have to decide what is important for us. Developing a workable financial plan may require us to get professional help.
Paying down debts that we brought with us into retirement, can free up a significant amount of money. We should take a look at stuff like credit card debt, and car payments first. By getting rid of these types of debt, the task of paying off larger ticket items, such as a mortgage, becomes easier. If we are still carrying student loans, these need to be paid off also.
It sure will be nice to look forward for the mailman to come, because he won’t be delivering any bills that we can’t afford to pay.
If paying down debt is a problem for us, it’s because we don’t have enough money to do it. We don’t need to be rocket scientists to figure that out. Assuming that we are still physically able to do some kind of work, this might be a good time to get a part time job.
Chances are that after we have been retired for a while, we need to find something to keep us busy anyway. Perhaps there is something we’ve always wanted to get involved with, and haven’t had the time. Maybe we can turn this interest into a way to make a couple of bucks to supplement our retirement income.
To be honest, one of the reasons I’m writing this post is to supplement my own retirement income. I invite anyone to take a look at my website, to see the details of what I do. For your convenience, here is a link to my website.
I must mention that I said that one reason I’m posting this blog, is to supplement my retirement income. Another reason I do this is that I hope to assist other boomers, who may find that their retirement years are more challenging than they would like them to be.
So, You’re preparing to retire.
The situation is this. We know that retirement is around the corner, and we’ve taken advantage of a retirement calculator, that we found online, and we have found that if we continue doing the things we’ve done in the past, our retirement years are not going to be what we expected. What Then?
We need to decide when we plan on retiring. One thing to consider is, since it is estimated that we boomer are going to live 25 to 30 years after we retire. And that we
know that our increased longevity is not necessarily a result of our good health. When it is a result of modern medicine’s ability to keep us kicking longer. We may decide that, instead of retiring at 65. Retiring at 70 will be better for use. That’s a good thing because the longer we wait to retire, the more time we have to prepare for it.
One benefit of knowing when we plan to retire is we can better get an idea of what our Social Security (SSI) benefit is going to be. If we start drawing SSI between age 62 – 65, we will be penalized for not waiting until we reach age 65. At age 65 we can draw a full SSI benefit. However, if we wait until age 70, we will receive a bonus amount for every year past age 65, that we wait. That bonus is good until we reach age 70. To draw the maximum SSI benefit, we don’t want to apply for SSI until we reach 70.
Another benefit to having a valid retirement target date is that we can customize our investment allocation, so it is the most aggressive, without infringing on our risk tolerance, the closer we get to retirement.
At age 50 the maximum contribution to an IRA, either Roth or traditional, increases by $1000.00 per year. That means that our max contribution can go from $5500.00 to $6500.00 from age 50 to our retirement Date. All the more reason not to retire until we reach 70.
We may have IRA accounts active with different employers. That is likely since most of us have had a number of different employers over the years. In order to facilitate keeping track of IRA accounts from different employers, we would be well served to roll over all our IRA accounts to our present employer.
Setting a comprehensive, efficient retirement savings plan is not something that many of us can do. I know I can’t. Therefore it is probably worth the time, effort, and expense to get professional help when putting together a proper retirement plan.
That’s all I got for now. I hope this post has been informative. If you have anything to add, or even disagree with my thoughts, I would like to hear from you. You can leave your comments below.