Money Talk With Slater

Making Money Across the Board

Monthly archives "June 2017"

Think Twice About Early Retirement

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Most workers, even if they like their jobs, get excited at the thought of early retirement. They can swiftly come up with numerous reasons why they would be nuts not to take an early retirement if it was given to them. There are good things about taking an early retirement, but there are a few things you should think carefully about before you choose to end your working career.

The benefits of early retirement are obvious. Not having to work full-time means more time to do things you love more than work. The thought of devoting every day to doing things you love sounds too good to be true. Who would not enjoy hours to garden, read, have lunch/coffee with friends or indulge in a secret hobby. Taking an early retirement brings more time to travel and spend time with friends and loved ones.

You must take time to think with caution all the ways your life will be different due to an early retirement. Think beyond all the pleasures and freedoms you will enjoy and think about your financial situation for a moment. Do you have money in place that will be able to support you if you take early retirement? How will you pay for your home, cars, insurances, and travel desires? It’s much simpler to dream about the kind of life early retirement will bring than it is to pay for that kind of lifestyle. If you have a family, you must also think about the responsibilities you have to take care of and support them.

The foremost thing in deciding about early retirement is not to hurry to the decision. Take your time, consider all your options and understand who you are before making a big life change. If it is right for you, early retirement can bring joy and blessings. However, if you retire too early, you may regret it for the rest of your life.

The Need to Be Flexible in Your Retirement Plan

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When saving for retirement, you’ll want to make a detailed, yet realistic goal. After all, you need to understand how much money you should save. Even if you are young (20s or 30s), having retirement goals are vital, even if later on they may change.

To decide how much money you must save for retirement, there are several important questions that you first must ask yourself:

Where do you want to live? Do you want to relocate?

What type of home or living arrangement do you want?

Are there any hobbies/activities would you like to start?

Do you want to start a small business in retirement?

For these questions, you need to begin thinking about their costs. When doing so, also take into consideration basic living costs, like shelter, food, and transportation. Inflation should be taken into account as well.

A Financial Adviser can get you started

Once you have finished the above steps on how much you need to save for retirement, you will want to increase that amount. You should always save more money than you need. The reason for this is that the simple fact is that there aren’t any guarantees with retirement or an age increase. Your retirement spending plan should take into account flexibility, as there are many occurrences that can come about that call for you to be flexible with your spending.

As stated earlier, inflation should definitely be taken into consideration. The price of goods and services will only keep on rising as you age. Not taking into consideration this rise can make you not have enough retirement money. Online, you can find numerous tools that can help you figure out the approximated inflation rate at your time of retirement. Keep in mind, nonetheless, that these are only approximations. A retirement financial advisor can also give you these numbers, as well as assist you with setting up an accurate retirement plan.