Years ago, you may have settled upon a retirement goal. You knew at which age you wanted to retire, you had an idea of your expected lifestyle, and you decided upon a savings goal. But in the meantime, maybe various life factors got in the way of meeting that goal. Now you find yourself wondering what to do next.
Your first option is to change your plan. Did your plan for retirement include a move to an expensive location, or extensive travel to foreign countries? Would you regret changing those plans and adopting a more frugal lifestyle? If you're in a hurry to stop working, you might not mind the trade-off of abandoning some of your more lofty goals. On the other hand, you may not want to give up on certain dreams.
If you're determined to still meet your retirement goals, your second option is to simply delay retirement by a few more years. This gives you more time to work during what is probably the earnings peak in your career. By making catch-up contributions to your retirement account, paying down existing debts, or adopting a more aggressive investment strategy, you could still meet your savings goal. Of course, it's important to know your own risk tolerance, and never risk more money than you could afford to lose.
Your third option is to find an additional source of retirement income. Perhaps a reverse mortgage is right for your situation, or you could take on a part-time job after you stop working in your current career. There are many part-time job opportunities for retirees that still allow for plenty of travel and leisure time, and working part time can actually prevent the unexpected boredom and depression that sometimes strikes retirees.
If you fear you may be falling short on your retirement savings goal, talk to your financial advisor. Together you can create a new plan that more accurately reflects your updated priorities and concerns.
This material was written by Online Profit Strategy for the use of Kirt Carstens.
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