When it’s time to start thinking about retirement, it is vital that you have a financial plan in place to see you comfortably through your golden years. Making a strong plan ahead of time sets plenty of safety nets and helps ensure that all of your financial bases are sufficiently covered. Below, we discuss some best practices for creating a bulletproof financial plan.
Think about a lucrative source of retirement income.
Whether you’re going to draw money from your 401k or rely on stock portfolio withdrawals for an extended period of time, it is crucial that you establish a realistic source of income before you retire. Your company may offer compensation throughout your retirement and it is important that to be proactive about looking into your employer’s pension plan or retirement benefits. We also recommend you consult your financial advisor to help you navigate this process in the most beneficial and seamless way possible.
Pay off any remaining debts.
Before you settle comfortably into retirement, make sure you don’t owe any remaining debt. This includes paying off your mortgage, student loans, and outstanding credit card bills. This will make your financial planning process much clearer and far more manageable. It will also allow you to pocket more income before you retire.
Set a budget for yourself.
Once you have a source of income planned out, it is time to set a budget. Create a plan outlining how much money you will spend each week, and what you plan to spend it on. It is important that once you arrive at a determination to stay disciplined and follow it strictly. Remember that once you stop working full-time, you will no longer be able to rely on a steady stream of income. This will help you to live within your financial limits and acclimate smoothly to your new lifestyle.
Go over your will and powers of attorney.
Once you begin retirement planning, it is critical that you get your estate settled. Develop an understanding of how much your family will be inheriting from your estate and what is left to divide up amongst your children. In the event of your sudden passing, your children will have to settle your estate for you.This can be an extremely long and difficult legal process for your children to undergo. Save them the burden of a will contest and have your estate settled immediately.
If you’re looking into retirement planning, OWLFI is the best place to start. Our team specializes in retirement planning, taxes, accounting, and select insurances. These include home, auto, and commercial insurance. We are committed to helping our clients enjoy a relaxing retirement by combining our expertise into one streamlined firm of dedicated partners. Together, we will eliminate any stress and uncertainty from the process while you prepare to enjoy retirement. To learn more about us, please visit www.owlfi.com.