Retirement may be a few years away, but it will be here before you know it. So what needs to be done so that you are ready?
- Firstly, have you decided what you are going to spend once you have retired? That’s a big question that needs some thought. Do you have any specific plans or things to do as soon as you retire, such as a world cruise? And once you have ticked off everything on your bucket list, how are you going to spend the rest of your life?
- Have you worked out how much daily living is going to cost you each week/month/year? How much will you spend on food, going out, heating, car insurance, TV/phone etc. And also remember to include the none regular items such as expenditure on gifts, holidays, an occasional new car.
- Have you repaid your mortgage in full or will you have by the time you retire. Unfortunately more and more people are still paying for their mortgage beyond normal retirement. Putting a plan in place to replay the mortgage sooner rather than later is always the best strategy.
- Have you built up an emergency cash reserve? It’s a great idea to have a rainy day fund that is sufficient to cover between 3 and 6 months of expenses.
- Do you know where your income will come from when you retire? If you have worked out how much it is going to cost you to live, the next is to work out what income you are going to have and where it is going to come from. If you identify a shortfall, doing something about it now rather than leaving it until you retire will be a lot less painful.
- Have you considered how your investments are structured as you get closer to retirement and will the strategy still be suitable and appropriate once you are retired? When you are building up assets during your working life, the objective is accumulation. However as you move towards retirement, this style of investing may no longer be appropriate. It may be that less volatile and steadier investments should be considered.
- Have you made a Will? And if you have Trust investments, do they need to be reviewed? Surprising many people do not have a Will. Having a Will clearly states what your intentions are when you are no longer here. Additional it will clearly show what your intentions are and hopefully will avoid any arguments following you death.
- Many people look forward to retirement and dream about what they will do for many years once it arrives. However, if you do not get excited about the thought of retiring, then quite simply don’t do it. It is very easy to become bored after retiring and tragically this can lead to a rapid decline in health especially if you have led a very active working life. So maybe retirement may be an opportunity to start afresh and do things that you have never had the chance to do before. Maybe you have a passion for something that you have never had the tome for before. Retirement may just give you that opportunity.
Contact Martin Dodd on 01902 742221 or email him at [email protected] if you would like talk about money issues.
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