According to a recent AARP article “21 percent of boomers say they are saving more than last year.” But retiring is still one of the biggest steps that anyone will take in their life. No matter how old you are, you need to start planning for life after work. To do this, you need to have a solid strategy to enjoy your golden years.
Meet the Neighbors
Motivational speaker Jim Rohn famously said that “we are the average of the five people we spend the most time with”. Therefore, watch who you hang around with and associate with people who can make you a better person not drag you down.
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Once you retire, a big part of living it up in retirement is making sure you like the people around you. No two neighbors are created equal, so be sure you know who is going to be living next to you before pulling the trigger.
Live off the Interest
The goal in retirement is that once you have built your nest egg, you want to have enough to “live off the interest”. The key is to do your best to budget your expenses in advance so you can live off of the interest of your money instead of reducing your principal. This gives you security and peace of mind while you spend guilt-free. If you want to absolutely guarantee that you won’t outlive your money, the only option is to buy an annuity. If you invest the money there is always the chance that the value will go down or that you will spend more than your investments produce. If you buy an annuity you are guaranteed to get a certain amount every month for the rest of your life no matter how long you live. To do this you need to only do business with advisors you trust, Annuities are often sold by advisors who work on a commission so you need to beware of that fact and do your homework before signing a contract. It pays to shop around, because there are a variety of different types of annuities with different features and some companies just charge more than others for the same features. See The Truth About Annuities for more info.
Look for Clubhouses
One of the best ways to enjoy a luxurious retirement is to pick a location with access to recreation facilities that you would use. So if you enjoy fishing, find a retirement community that has access to fishing. If you enjoy golf (which can be an expensive hobby) find a golf community with golf course property for sale. You need to do your research and act quickly when you find one. But the work is worth it when you’re enjoying the green with your friends and family in the sunshine. Be sure to look at the ongoing monthly cost to determine whether it is a good deal or not. For instance, if an average round of golf costs you $50 and living in a golf community costs you an extra $200/month in HOA fees are you going to golf at least 4 times a month? If so then the extra cost is probably worth it. Even if you don’t golf that often, it may be worth it for you to be able to live in a community of people with like interests. However, if it costs you an extra $500/month and you only golf occasionally you my want to reconsider.
Splurge
Once you are sure your retirement income will cover your expenses with some left over, don’t be afraid to plan big vacations and splurge on treats. Many retirees enjoy taking cruises because everything is covered in one package and you get good food (and lots of it), and you see different places without a lot of travel hassles.
You need the occasional reward to really make the most of your retirement. It has been said, that “making memories is more important than accumulating stuff”. If there is a location you’ve always wanted to see or a class you want to try, now is the time to take the leap and start this new part of your journey. It can create memories you will cherish forever.
When it comes to retirement, you want to have a high standard of living. Retiring is to be enjoyed, not endured. But it is essential that you have a game plan to put your money to work for your so you can share the wealth with your family and friends.
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