What to Consider if You’re Planning to Retire in 2019

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5 days ago

2019 is as good a year as any to retire, so long as you’re ready. If you’ve decided that this is the year for you, then it’s time to start preparing. Retirement can be leisurely and smooth, but if you’re not ready or don’t take your finances into proper account, it can be worse than working forever. Here are a few things to consider if you know that 2019 is your year.

First, let’s start with the basics. In order to plan for the years ahead, identify all of your sources of income and calculate how much money you will reliably receive each month. Make sure to look at all income, be it social security, 401k, benefits packages, or any other passive income you have created for yourself. Likewise, it is just as important to know your expenditures. Think about everything from food, healthcare, and housing to passive spending such as monthly banking fees. Keep in mind that housing typically makes up approximately one third of retirement spending in the US. The real key is to match your GUARANTEED sources of income with your ESSENTIAL expenses. Failing to do this often gets people into some trouble during their retirement.

The second major theme to consider if you’re retiring in 2019 is risk management. Unfortunately, things always go wrong one way or another, and you need to be prepared. For example, failing to cover foreseen or unforeseen healthcare expenses can throw your retirement into disarray only part of the way through. Think about everything from market risk to inflation, then cover and manage it.

Lastly, make sure you enjoy your retirement! It may sound simple, but if you are an average American, you’ve likely spent up to 50 hours per week commuting and working. In retirement, you will have a lot of free time, so it’s good to fill your schedule with things you enjoy.