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A happy retirement is something we all define differently, yet all dream about. As this time approaches, it’s important that you understand what strategies lead to a satisfying retirement and how you can better plan and prepare for it. Here are 7 keys to planning a happy retirement.
- Know What You Want Out of Your Retirement: Planning for retirement isn’t easy when you haven’t quite pictured what it will be like for you. Having a happy retirement means defining what you expect out of it. Think about where you’ll spend your retirement, what you’ll do, and who you’ll spend it with.
- Talk About Your Plans: If you’ve got a life partner, it’s important to start talking about retirement as early as possible so that both people are on the same page. Knowing what each person wants out of their own retirement can help shape up how both can do it together. Make a list of things each person desires out of the retirement, and then mark them as “must have,” “want,” “wish.” This will show both sides what is most important to each other, making it easier to plan a retirement that fits everyone’s needs.
- Pick a Retirement Year: The only way you’ll retire on time is if you plan accordingly. Pinpoint a year that you would like to retire in or by. Per the book The Retirement Maze, 69% of retirees who retired by choice were happy with their lifestyle and only 36% of those who were pushed into retirement were happy. This shows us that retirement should be about the individual’s desires the most. If you’re a happy worker who likes to stay busy, maybe a later retirement will best suit you.
- Calculate a Retirement Income Plan: Do the math and figure out how your 401(k), pension, and Social Security benefits translate into monthly income. Set a withdrawal rate that will allow you to finance your retirement long-term. Figure out which accounts you’ll withdraw from first to keep taxes low.
- Find Your Fit: A happy retirement includes being active. This isn’t just about staying healthy, but about keeping busy in your newly found free time. Retirees are often happiest when they’ve found hobbies or groups to spend their time with. It’s important that you have something to fill your time and dedicate yourself to during retirement.
- Pursue Passions, Learn New Skills: Retirement is a good time to pursue the passions that you put aside to focus on your career. If you’ve always wanted to carve, paint, build models, or go back to school, now is your chance.
- Utilize Your Life Insurance Policies: A happy retirement is one that you can afford. With a fixed income, it can be difficult to plan for the retirement lifestyle you see yourself in, especially when you’re juggling fixed bills and rising medical costs. Life insurance policies that no longer serve a purpose, or ones that you no longer feel you need, can be sold through a life settlement to acquire a large sum of upfront cash. That money can be used to pad your retirement funds, or grow your investment portfolio.
Life settlements can provide a very real benefit to seniors in retirement. To find out if you qualify, check out our Qualification Calculator. You can also visit our website to learn more about how life settlements work.