by Brian Bagnall
Unless you’re lucky enough to be doing a job you absolutely love and never want to quit, chances are you want to retire at some point with enough money to enjoy yourself in your later years.
Trouble is, What typically happens when we do stop working, is we experience a drop in our income and all our plans for enjoying a few luxuries while we relax are suddenly out of the window!
Over your working life, your income will typically increase with age and experience and then in your 40’s, it tends to level out a bit. There are less chances for promotion so you tend to stay at roughly the same rate until you reach retirement age.
What happens next can be quite a shock because when you do retire and your pension kicks in, you will see a sharp drop in your income. This can be much worse if you happen to retire in the middle of an economic downturn, as many people have found out over the last few years!
It doesn’t have to play out like that though and with some careful planning, you will be able to retire on time and still enjoy the lifestyle you currently do without having to take a hit.
Here are 5 things you can do to give yourself the best chance of being able to retire on time and with the levels of income you deserve:
Sounds really obvious, right? If you want to retire at a certain age with a certain income, you need to work out exactly what that looks like or you have no idea how to go about making it happen.
It’s like any kind of goal setting exercise and you have to know where you’re going so you can take the action needed to get there. This is slightly different though and you will need to revisit your plan on a regular basis to make sure it’s on track.
What makes it different, is the fact that the economy has a habit of changing and you will need to make sure that your investments are not going to be damaged by a change in circumstances.
Once you’ve worked out the right route map for your particular needs, you will have to choose the best vehicle to get you where you’re going. In the real world, it’s no good using a skateboard to go off-roading!
If you have a normal 9 to 5 kind of job, chances are your employer has some kind of pension scheme in place but you need to make sure you understand all the small print of the scheme and the amount of money you can expect at retirement.
It’s likely that if you solely rely on your work pension, you will experience that drop in your income that we mentioned before, so be prepared to seek out alternative ways to invest in your retirement.
It’s another one that sounds really obvious but is more often overlooked. If you want to retire on time, you may need to make a few sacrifices along the way to make sure you have enough money when the time comes to pull the trigger on your retirement plan.
Saving some money each month deals with two possibilities…Assuming your life is plain sailing and nothing goes wrong, the money you have been saving can be used to top up your pension. If something does go wrong (and you know it often does), you will already have a stash of money available to dig you out.
Saving for a rainy day is always sensible because it does tend to rain every now and then! Obviously, you should choose the right place to save your money to get the best return possible over the long haul but make sure that if you need it, you can get to it without massive penalties too.
It’s easy to get sucked into buying the latest “must have” technology or putting the cost of a vacation on your credit card but remember that everything you spend now is just taking away from your retirement fund.
Now I’m not saying that you should stop enjoying yourself in the present but if you have a plan to retire at a certain age, with a certain income, you will have to be careful about how you handle your money.
Living for the moment can be exciting and I’m sure your family and friends might enjoy the ride but when it comes down to quality of life in your twilight years, being a little cautious about your spending will most definitely pay off!
Think about things like the possibility of increased medical bills or long term care…The last thing you want to do is burden your family with those kind of decisions and worries because you decided to live beyond your means.
It’s all about balance…Enjoying the journey of life with an eye on the future.
Assuming you have a typical pension from your 9 to 5 and are managing to put a few bucks away each month on top of that, it would be wise to look for opportunities to invest your savings into plans that will give you the best returns.
It really depends on the economic climate at the time but there are many ways that you can increase your savings and future retirement income if you are smart about how you invest.
Property and stocks both tend to perform well over long periods of time and the rewards can add a great deal to your chances of retiring on time but caution is the watchword.
All investments are risky, to a degree, so it’s important you get the right advice before you decide which way is best for you.
If you think this article has been helpful, please share it…Maybe it could help someone else too!
P.S. The advice above is mostly common sense but because I have no idea about your actual financial situation, it’s pretty generic.
The fact that you read this article tells me that you are serious about your retirement and are at least thinking about how you can best plan for your future and because of that, I want to reach out to you and offer you a helping hand.
I want to offer you the chance to jump on a quick 30 minute call with me (free of charge) so we can take a look at your situation together and see if we can come up with a solid plan that you can use to make sure your retirement goals are well and truly met.
Brian Bagnall is an in-demand author, speaker, and real estate investor who has written several books and spoken at conferences throughout the United States. He's shared the stage with business greats like Daymond John from Shark Tank. Brian actually practices what he preaches. He began his investment empire with just $3,000 in start-up capital and has gone on to purchase over 100 properties (and counting) all over the country. Brian turned his small investment into a multi-million dollar success.