Questions to ask yourself to help prepare you for Retirement
In retirement there is not a one plan fits all retirement plan. There are many questions you have to ask yourself and must be 100% honest because the bottom line is you will have to live with the outcome. Questions like what kind of monthly budget would you like to live off of? What income can I count on every month? Also, will I have any dept, will I be in good health, can I earn money from my hobby? What age would I like to retire at? All these are great questions to ask yourself to prepare a plan to help you reach your goals for retirement.
Guidelines to a Healthy Retirement
A persons monthly budget has to be the number 1 question and probably the most important question also. A good rule of thumb is a person should not use more than 4% of there total retirement fund each year. This means that if you have saved $1,000,000 that you should only withdraw $40,000 each year to live from in order for your retirement fund to stay healthy. If a person were to have dept at the time of retirement, such as a house and car payment $40,000 would not be enough so their goal should be to save $2,000,000 which would give them 80,000 a year to live off of. Another very important question to answer would be what age would you like to retire at? The earlier you retire the more money you will have to save simply because it will have to last you that much longer.
Good or Bad health at time of Retirement
Nobody really thinks they will be in bad health but lets be honest there are a couple of ways to try and determine what your future might look like health wise depending on your good and bad habits and genetics. First you should always have good insurance coverage. If you are a cigarette smoker you might plan for cancer or COPD. My mother was a smoker for 43 years and had 3 rounds of cancer and now suffers from COPD. If you drink moderately, exercise regularly and eat right you should live the average life span for a person in good health. Their is one exception to this question and that is genetics, a person would have to pay attention to their parents health and even their grand parents health. Do they suffer from heart attacks, high blood pressure, cancer, strokes or Alzheimer’s because if they do, there is a chance that you might and you can prepare for it at least from a retirement stand point. All these questions are a great to ask yourself to help one start to save for retirement and for more tips on retirement click on this link.