There are two kinds of working people:
Those who work because they HAVE to work to pay the bills, support a family, fund retirement, etc.
Those who work because they WANT to work and they love their jobs.
Most of us aspire to be in the second group, those who work because the work that they do is satisfying and fulfilling. So, how do you get there?
- Eliminate Debt - The sooner you get out of debt the better. Work toward paying off credit cards, student loans, auto loans, and even the mortgage. Make it a goal to have all debts paid off by the time you retire. Life gets very simple without debt.
- Save as much as you can – Start with an emergency fund of 3-6 months’ income. Then work toward maximizing retirement account contributions. Consider investing in a 529 college savings plan for your children. You might also consider investing in a Roth IRA or other investment account.
- Make a plan – In order to be able to retire, you must have a plan for income to cover expenses. You will need to be able to pay for things like medical bills, food, taxes, and utilities. You will want to be able to afford fun things like travel, social activities, home improvement, etc. The better your plan, the more confident you can be in quitting your 9 to 5 in favor of retirement or an encore career.
- Get professional help – Planning income for the rest of your life is no easy task. While there are many things you can do on your own such as investing in retirement accounts at work, creating a strategy to pay down debt, and coming up with a reasonable spending plan; most individuals will benefit greatly from outside advice from a Fiduciary Advisor when it comes to long-term lifestyle planning.
My best days are the ones I get to tell clients “You have enough saved to meet your retirement goals, when do you want your retirement date to be?” For some it is a thrilling prospect. They have wanted to quit for a long time and now, it is just a matter of giving notice and planning the next phase. For others, it is a bit more unnerving; they have not given much thought to retirement and do not know if they are ready for that step.
Whether you have thought about retirement and have a set date in mind or you love your work so much that you have not given it much thought at all, you should take these steps to ensure that when the time comes, you will be ready. If you would like to talk to someone about planning for your future, give us a call, we would love to talk to you about finding a way to work because you want to.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal. No strategy assures success or protects against loss.
photo credit: SalFalko <a href="http://www.flickr.com/photos/57567419@N00/6384704645">Absorbed pensive mature businessman</a> via <a href="http://photopin.com">photopin</a> <a href="https://creativecommons.org/licenses/by-nc/2.0/">(license)</a>