Breaking down retirement planning into stages makes it less daunting. Terrance Selb, a senior partner at a tax resolution firm, says the stages are also more manageable.
Once you know your retirement goals, you can start working towards them. That step kickstarts everything, and it’s best to look at your current financial situation. Think about how much you already have and what’s needed to achieve your goals. Talk to a financial advisor if the process is overwhelming.
As you figure things out, you need might to adjust some things. Doing so helps save more money. Depending on your situation, thinking about a part-time job in retirement may be necessary. The idea is to do whatever it takes to get things done.
The pre-retirement stage
Retirement can be blissful if you get your ducks in a row. So, it’s vital to understand what the pre-retirement stage is all about. It’s the stage when you begin figuring out what your retirement will look like. While you’re at it, know it isn’t the same as retirement. This phase focuses on planning.
At this time, consider your health and wellness. You need to take good care of yourself. That way, you can enjoy your retirement years.
Honeymoon period
Once you reach this stage, it means you planned everything and have retired. It’s time to kick back and relax. You no longer worry about work hassles.
Like the marriage honeymoon, this period also ends. You then start dealing with the realities of not going to work. As you adjust, feeling anxious about sitting around all day is common. Because of this, Terry Selb says it’d be best to plan for the post-honeymoon period. Consider doing things you’ve always wanted to do.
Whether volunteering, taking classes, or finding a part-time job, find something fulfilling to do with your time. That way, you’ll feel purposeful and satisfied in your retirement years.
Early retirement period stage
At this stage, you may need to downsize. This way, you free up some cash, and Selb says go for it. And here’s why. Downsizing can be a surefire to reduce expenses. If you have already done some of your favorite things, like going on holiday, consider slowing down.
Doing so lets you stretch your retirement savings further. It’s common for retirees to find a downsized home or apartment that fits specific needs and budgets. So, don’t hesitate to let go of some things if it makes financial sense.
Mid-retirement stage
After 70, you enter the mid-retirement stage. At this time, you ought to arrange end-of-life care insurance. With that bit out of the way, you can relax, knowing you’ll be cared for if your health deteriorates. You must continue budgeting carefully and enjoying your free time.
Late retirement stage
At this stage, things like updating your will and power of attorney become super-important. You can do the same with your end-of-life care plans. If you still need to prepare your final expense insurance policies, now will be the right time.
About
Terrance Selb owns American Tax Solutions, a tax consultancy firm. He brings a wealth of experience to the venture after spending 20 years handling tax-related matters. The company is one of the fastest-growing businesses in the tax resolution industry.