Setting goals can help you decide how best to use your time and resources when you retire. Without a goal in mind, you might do it You start to feel lost After several months of not having a schedule or feeling routine. Setting goals you hope to achieve can help you stay on track with your retirement planning. You will have something to look forward to, and be ready to enjoy new opportunities in retirement.
Some common retirement goals include:
- Create a retirement budget.
- Plan an important event.
- Prioritize wellness.
- Discover new interests.
- Rethink where you live.
- leave a legacy.
1. Determine the retirement budget
Many individuals and couples feel comfortable knowing how much they will need each month in retirement. “Having a vision for the future helps drive our behavior to support our current goals,” says Kurt Heinemann, financial planner at Vision Casting Financial Planning in Spokane, Washington. The starting point includes thinking about what you want to do and when you want to retire. You can then talk to a counselor to find out how much you need to put aside. “Adding numerical values to goals makes them tangible and achievable,” says Heinemann. If some of your first lifestyle choices don’t work for you retirement budgetyou can reformulate the factors to reduce costs and live within your means.
2. Planning a landmark event
Arrangements are often made for a gathering to begin retirement. Some individuals take the concept even further and map out an experience to mark the transition from work to retirement. “One of the common goals that former retirees say they want in their retirement is a luxury trip that takes place in the year or year following retirement,” says Jim Etzler, partner and wealth advisor at HCM Wealth Advisors in Cincinnati, Ohio. “The benefit is essentially intangible in that it gives the individual something to constantly look forward to.”
A luxurious and freedom-filled event could mean different things to different people. Some people may look to stay for three months Europe. Others can rent an RV for a month and travel within their state. Retirees may choose to drive cross-country and travel at their own pace. Regardless of the choice, financial factors must be weighed and accounted for in advance.
3. Prioritize wellness
Limiting your work hours and diet gives you the opportunity to focus on fitness. “Our goal is to live as well as possible for as long as possible, so we focus on maximizing our health,” says Ed Staton, co-author of Reimagining Retirement. He and his wife Cynthia eat a balanced and nutritious diet, exercise for an hour each day and get about nine hours of sleep each night. They are also actively looking for ways to avoid stress. “Immediate benefits include no prescribed medications, and feeling happy most days,” Staton says. “In the long term, we strive to avoid spending hundreds of thousands of dollars that Americans are expected to need for healthcare in old age.”
4. Discover new interests
Whether it’s RV travel, gardening clubs, art lessons or learning a new language, workers often dream of doing something different in retirement. Anticipation can act as a motivation to save each month. It can also help retirees stay positive and feel connected. To avoid committing to a large purchase or a tight schedule that you may want to change later, Try activities You think before you step away from the workplace. For example, you might do volunteer work at a large center, and find that while you enjoy helping out, you prefer being in an environment with children, such as a charity dedicated to supporting families.
5. Rethink housing
For many people, the idea of paying off a mortgage by retirement is an attractive one. Some promising retirees shrink to A smaller house It needs less maintenance. However, other retirees are buying a runner-up in a coveted place. “This might include having a home in a northern and southern climate so they can travel back and forth as they please,” Etzler says. It could also be to buy a vacation home, such as a cabin on a lake, that is rented out for the times when they are not there. “Often the goal is to get somewhere, both physically and mentally, where they feel comfortable and able to enjoy the after-work years,” Etzler says.
6. Leave a legacy
If you have family members including children and grandchildren, you may be interested in passing on a portion of your savings to future generations. Some retirees are motivated by certain reasons and want to leave an amount to Charity. “How your loved ones remember you and your impact on the world becomes important later in life,” says Noah Schwab, financial planner at Stewardship Concepts Financial Services in Spokane, Washington. To prepare a legacy, you can consult your financial advisor to discuss estate planning. “Using strategies like the Donor Advice Fund can allow retirees to save on taxes and simultaneously achieve their charitable goals,” Schwab says.