Retiring should be a relaxing time when we say goodbye to the 9-5 and enjoy the fruits of our labour. Planning ahead, saving early, and deciding what kind of legacy you wish to have are all easy ways to enjoy your retirement with success.
Keep your mind and body active once you finish regular work and consider other ways to contribute to your savings. You can make your nest egg work for you by investing, or do small work from home. Planning and saving early will give you options to do whatever you feel is best for you.
It’s easy to forget about the future when we all live in the now. By funding your retirement early, you’ll be able to retire at your leisure. There are many government contribution schemes, with the most common being the 401(k) plan. With the 401(k) plan, basically you decide how much you wish to contribute, and your employer puts that money into your retirement account on your behalf. The maximum contribution under this plan as of 2012 is $17,000 per year for those under 50. There are also plenty of tax benefits for contributing more to your retirement fund.
Retiring with money is one thing, but it’s another being able to enjoy your spare time. Plan well in advance for any large expenses you might have. Things like dream vacations should be planned out before you retire. Work out how much money you’ll need to fulfil whatever dreams you have.
Remember to keep yourself busy when you retire. It’s so easy to forget that we need to continue to do things when we finish work. Once we retire we don’t have the usual 9-5 work place tasks occupy our minds. Take up a hobby or go on regular vacations to keep your mind busy and keep you at the top of your game. For more information on retirement planning, Australian readers can visit UBanks self-managed super funds.
Decide early how much of your legacy you wish to pass to the next generation. You decide how to spend your retirement, but it’s important to remember that lavish spending can leave nothing behind for family members. Many of us would like to buy that Ferrari we’ve always wanted, and many of us still would. It’s important to take the time to consider family members. Remember though that this is your retirement and you can spend it however you like.