Baby boomers have been retiring in record numbers. With the economy still a bit shaky, however, many are wondering if they actually have enough money and resources to pull a Igor Cornelsen and retire comfortably with a happy Facebook feed. The following are 5 tips for making sure that when you’re ready for retirement you’ll have an adequate nest egg.
1. Define What Your Retirement Will Look Like
You’ll need to know what kind of lifestyle you’ll be living before figuring out how much money you’ll need. While many baby boomers have dreams of traveling the globe or sailing around the Caribbean, this is probably not realistic for most retirees. Make a list of goals for the future, monthly expenditures, and make sure to factor in unexpected expenses.
2. Take Stock of All Your Assets
Make a list of every debt you have including mortgages, credit card bills, and any other type of loans. Then make a list of your assets. This might include your 401k, savings accounts, and any equity in your home. You’ll always need to take into account your monthly living expenses. This should give you a pretty good idea of how much money you’ll have for retirement.
3. Consult With a Financial Planner
If you have several debts or your assets are in stocks that may be confusing, it’s wise to consult with a financial planner. Just because you’re getting ready to retire and think there’s not enough time to save much money at this point doesn’t mean you can’t benefit from a planner’s expertise. A financial planner can help you organize and manage the money you do have and may even have advice for short term investments that can increase your monthly income.
4. Evaluate Your Health
Medical expenses are one of the top reasons Americans file for bankruptcy. Even with Medicare and Social Security, all healthcare expenses may not be covered. Evaluate your health conditions honestly and plan for any unforeseen hospital and medical expenses.
5. Consider When to Sign Up for Social Security
You don’t always have to sign up for Social Security the same year that you retire. Payments can increase for each year that you delay claiming up until age 70. If you’re in good health and one or more parents lived into their nineties it may be in your best interest not to sign up until age 70.