You might not believe me, but one of the most difficult decisions you will make after completing your savings pilgrimage is how to live in retirement. You will have spent the majority of your life on the path to a goal, financial independence - the ability to do what you want, when you want, for as long as you want. Ah, what a great feeling this will be… but what is it you want to do?
Right now if I were to retire I would want to play golf, drive fast cars, exercise for 3 hours a day and grill out for every meal. Will I want to do these same things in 40 years? Not likely. But I can make some basic decisions: Will I want to work part time in retirement or what about volunteering? Will I travel more or stay around town? Do I want to follow my fellow retiree’s to live in Florida or Arizona?
The answers to these questions will be vastly different for everyone and there will be unique questions for each person’s situation. Your answers might even change after 10 or 15 years. I strongly recommend sitting down with your significant other and think about your ideal retirement lifestyle at least once every 5 years. This is a great way to stay on the same page with your goals and you might even re-energize your savings pilgrimage.
Remember, any financial plan is a living, breathing document. As your financial situation changes so should your plan. As you reduce debt you should look for places where you can put that extra money to work. If you earn a raise at work, make new plans for the extra money.
Retirement is not the same for everyone, you may not want to fully retire or you may choose to spend more in retirement then you did while you were working. The idea behind retirement planning is that you will have accumulated the resources to be able to choose either option. If you don’t have a financial plan or would like a second opinion on your current plan, feel free to contact me!