Whether you are a small business owner, an employee working for a company or perhaps you have a home business; you know that one day it will be time to retire and your steady stream of income will end. It is never too early in your career to begin planning for that eventuality. What you do not want to do is to wait too much and be caught unprepared for your retirement years and the special financial considerations you will need to face such as rising health care costs. Take some time now to prepare your retirement checklist. Here are some issues to think about when preparing your retirement checklist:
See Also: Top 10 Reasons to Retire Now!
1. Desired Retirement Lifestyle
Decide how you are going to spend your retirement years. Do you plan on living in your current lifestyle or do you have plans to travel abroad? Estimate monthly expenses and budget how much you will need to make your retirement dreams come true.
2. Determine Financial Risks
With life spans increasing, you need to make sure your retirement income will last as long as you need it. Health care costs are rising and so is inflation. Give yourself some cushion by planning for the occasional rainy day during your retirement years.
3. Health Care
In a perfect world, you would live out your retirement years in leisure and free from sickness or disease. The reality is that many seniors experience declining health during retirement and do not have adequate health care coverage. You may want to consider opening a health care savings account. These plans allow you to save for health care expenses. The money you save is tax free as long as it is used to pay medical expenses.
4. After-Retirement Job
While many small business owners enjoy the relaxation of travel and leisure during their retirement, other folks only seem to be happy when they are working. Seriously consider whether or not you may want to work again after retiring, even if it is only as a part-time consultant. Working will keep you socially engaged and it will reduce the amount of retirement savings you must rely on for living expenses.
Perhaps you have some type of skill or hobby that can help you earn extra cash during your retirement years. Are you a musician that can give music lessons or maybe you are skilled at making pottery. Why not open that craft store you always dreamed of? You now have the time to focus on all those ambitions that were only dreams when you were at a 9-to-5 job every day.
Now is the time to plan for retirement. You can never begin too early! Planning now will determine what kind of retirement lifestyle you will be able to enjoy. Take some time to make your retirement checklist and make the transition from the workplace to retirement one of ease. Can you think of any other items that should be on a retirement checklist? Feel free to share in the comments below!