How Retirement Planning Can Help You Retire in 2021
December 2, 2020at10:30 PM
Retirement might be closer than you think. For those who’ve planned on retiring in 2021 for years now, the current recession and general uncertainty in the world may have you second-guessing. With retirement planning, you may be able to exit the workforce by the end of 2021 as planned or even sooner.
However, retirement is one area where it pays (literally) to be methodical. In the age of information, there’s no limit to the free resources online to help you understand your financial landscape and where retirement fits into the grand scheme of things.
Help You Retire collates the myriad of retirement resources across the internet into one easy-to-navigate database. Your retirement planning can start just by calculating your current benefits with tools like:
Social Security benefits calculator
Investment distribution calculator
Retirement planning guide
Understanding retirement benefits
Unless you’re very experienced in financial planning, you might miss ways of maximizing your retirement benefits. That’s where retirement planning comes into play.
What can retirement planning do for me?
You want to plan a retirement that’s secure for decades to come, even if emergencies and unplanned expenses arise. The worst-case scenario is being forced to re-enter the workforce because you didn’t incorporate multiple components and time horizons into your retirement planning. Consider these unexpected post-retirement expenses:
Vacation or second homes
College for children or grandchildren
Unexpected home renovations
Even with a rock-solid retirement plan, sudden expenses can throw your retirement accounts into disarray and compromise your future financial security.
Will I really be ready to retire in 2021?
A retirement planner with OWLFI uses a holistic approach to examine your retirement feasibility and establish a clear timeline. During a retirement planner consultation, they’ll offer potential adjustments to your finances that will:
Maximize your cash savings
Minimize the taxes you owe
Protect your assets in case of the unexpected
Prepare for estate planning
Regardless of when you plan on retiring, meeting with a financial planner is one of the best investments you can make. They have the experience and knowledge to improve your quality of life post-retirement.
Do these essential retirement planning steps.
When you decide retirement is only a year away, you need to prepare as soon as possible. Even if you’ve been picturing this moment for decades, it’s easy to skim over critical areas of preparation. If you’re retiring in 2021, be sure to do these three things:
Augment emergency savings: the market may still be volatile for months. If you’re forced to withdraw retirement funds during a recession, you’re doing so at a loss. Use the time between now and the end of 2021 to maximize your emergency savings.
Ensure your savings will last: you can withdraw 4% of your savings during your first year of retirement, followed by yearly adjustments for inflation. You want your savings to last at least 30 years.
Apply for a HELOC: if you’ve paid off your home, you’re sitting on a lot of equity that can help carry you through the tumultuous years ahead. Applying for a Home Equity Line of Credit gives you options in case the market tanks.
Even though we’re living through an uncertain time, your plans for the future don’t have to change. But it pays to speak with a qualified professional before making any decision that affects the rest of your life.
Experience the holistic approach to retirement planning with OWLFI.
OWLFI is really more than just retirement planning. They’re financial planners, attorneys, and CPAs all under one roof. They help their clients develop strategies for maximizing retirement benefits by looking at the entirety of their financial situation.
Get in touch with the planners at OWLFI and start making moves towards the golden years of your life.