Ssshhhhh… Can you hear that? It’s the sweet sound of retirement approaching! The time you’ve been dreaming about for decades is nearly here. No matter how large your investment portfolio has grown over your lifetime, unfortunately you can’t dismiss budgeting entirely. Here is why it’s important to start your retirement with a spending plan that works for you.
Making a budget may not be the first thing you look forward to in retirement, but it’s one of the most important things to do to start your retirement on the right path.
Continuing Your Financial Approaches
Throughout our careers, we may not even have noticed that we perfected the art of managing our finances on a monthly basis, everything from 401(k) contributions to that vacation or new car fund. So why change a good thing now you’ve hit retirement? Whatever the size of your nest egg, retirement will mean changes in your financial life so you need to plan accordingly. Start with your essential expenses (like food, housing, healthcare and transportation). Once your must-haves are documented, start to plan in additional activities such as dining out and vacations.
Tactful Investment Strategies
A well-designed retirement income plan should be backed by an investing strategy that provides opportunities for your assets to generate earnings and helps your income keep pace with inflation.
Start considering what your retirement income will be. Do have any pensions? How much will you make each money from Social Security benefits? (If you’re unsure, try our Financial Calculator)
Look at your retirement savings across all your accounts. You may have some money in an employer’s 401(k) and some money in an IRA. If you switched jobs at any point and didn’t roll over 401(k), you may have money saved with a previous employer.
Use your Savings for Spending
While some feel using a savings account may not feel natural because we’ve been conditioned to believe that “savings” are for saving, left with only Social Security and any pensions or other supplemental fixed income, you simply may not have enough to enjoy retirement the way you planned. Remember why you retired—to have fun and do the things you never had time for when you were working! Finding ways to ease the burden of financial management is always a good idea, but it’s especially important in retirement, when you’re likely to spend more time traveling and pursuing your passions.
Final Thoughts
Although making a budget is one of those chores people tend to put off, it can be an essential contributor to feeling confident about your finances in retirement. The financial representatives at CKS Summit Group can help you determine what route to take when making a retirement budget. Our cutting edge tactical portfolios help our clients achieve safe, healthy growth of their savings and preservation of their principal balance.
Call us today on 586-286-5820 or click here to schedule your complimentary strategy session. We look forward to working on a retirement plan best suited to your needs.
