It’s no secret that planning for retirement isn’t a walk in the park. It requires a series of steps to ensure you get over the line. Moreover, you need to build a financial cushion for a secure, stable, and comfortable retirement.
To make this happen, you need to take specific steps, such as setting your retirement goals, planning for extra retirement income, and more. If you’re eager to learn about the tips for ensuring a secure retirement, you’ve come across the right article. In this piece, William Schantz will share four tips for having a safe, comfortable, and fun retirement. Read on.
4 Tips for Having a Secure Retirement According to William Schantz:
According to William Schantz, here is how you can plan a comfortable retirement:
1. Focus on Timing
One of the fundamental approaches you should take to ensure a secure retirement is focusing on your current age and expected retirement age. One thing to note here is that the longer the retirement’s time duration (from today to retirement), the higher the chances of your portfolio’s survival.
To give you an idea of how this works, if your age is more than thirty, most of your assets are in a riskier state; for instance, stocks. This will give rise to volatility; however, one thing to note here is that stocks can outperform other securities, such as bonds, over an extended period. However, they require at least more than ten years to make this happen.
2. Create Retirement Goals
According to William Schantz, focusing on timing and setting retirement goals go hand-in-hand. They are the ones that provide the foundation for a successful retirement play. You need to start by determining your long-term retirement goals, including financial and lifestyle goals.
These objectives include how you want to live, where you want to live after retirement, and more. Besides setting these goals, it’s advisable to learn about the various retirement plans available on the market. Also, one thing to note here is that these goals might change over time based on your life circumstances.
3. Make Plans for Additional Retirement Income
There’s no denying the fact that retirement is often considered a time where you can relax. However, many people still find themselves busy exploring different options. This means they tend to find means of earning additional income after retirement.
While some get a part-time job to earn extra bucks, others turn a hobby into a small business. In contrast, some start working as real estate agents – buying and managing investment properties. One thing to note here is that working after retirement can push you into a higher tax bracket.
4. Learn about Retirement Plans
Exploring different retirement savings plans like 401(k), IRA, GAI, and SEP plans plays a crucial role in ensuring a secure and comfortable retirement. In addition to that, it’s advisable to understand the importance of investing in a Health Savings Account (HAS) since it will allow you to save a significant amount of money both before and after retirement.
These retirement savings plans will provide you with decent coverage to avoid any financial catastrophes that might occur in the future.
Final Thoughts by William Schantz
Without a doubt, planning for a secure and comfortable retirement can be daunting. However, you can ensure you have a stress-free, relaxed, and fun retirement, provided you follow certain steps. For instance, you can explore retirement plans and pick the one that suits your needs or set your retirement goals while focusing on the retirement time duration (between today and retirement). Check out William Schantz’s four retirement tips to have a secure retirement.