Retirement planning is all about knowing where your money goes and how you spend it today so that you can plan how to spend it in the future once you’re retired. It’s not always easy to know if your retirement plans are on track, especially if you’re young or just starting and your situation might be changing frequently.
Questions to Ask Before Retirement
1) Do I know what I want out of my retirement?
2) Have I saved enough money for my lifestyle?
3) Do I have a plan B should things not go according to plan during retirement?
4) Have I prepared myself psychologically for life after work?
5) Have I set realistic goals around income during retirement?
6) Am I ready to take on more responsibility?
7) Have I checked if social security will be available when I need it?
8) Are there tax implications surrounding my retirement plans that need attention now or later?
9) Do I trust and rely on others enough to get me through tough times later in life?
10) How many people depend on me financially?
What Are the Required Retirement Plan Distributions?
Where Should I Keep My Retirement Accounts?
Is an IRA Right for Me?
What Are the Benefits of a Roth IRA Over Traditional IRAs?
What If I Cannot Afford to Contribute to an IRA?
Which Investment Company Should I Choose?
How Much Money Do I Need Saved for Retirement?
Will my Pension Supplement My Retirement Income?
Retirement planning is just as much about making sure you don’t run out of money as it is about making sure you have enough for a comfortable lifestyle. If you receive pension income, it should supplement your savings and other retirement income sources, not provide all of your monthly income. Otherwise, you’re putting too much pressure on your nest egg. For example, if you live to 80 years old and only have $200k saved at retirement, that’s barely going to cover 2 years’ worth of expenses without any income from your pension or investments!
However, saving and investing are often scary. You may be afraid that if you fail or it doesn’t work out then what will happen? By consulting with a CPA financial advisor in advance, you can avoid running into pitfalls down the road by ensuring that you have planned adequately so that when retirement comes around – there won’t be anything preventing you from enjoying time with friends & family doing activities that fulfill rather than deplete your bank account!