How to Work up a Worry-Free Retirement
by Natalia Moore
Retirement is a time when most aspects of your life will change.
It can bring change in what you do, your status in the community, your relationships with others, your needs, as well as change in your financial position.
Many people think that when planning for retirement the only aspect they need consider is the financial one. They feel that if there is enough money all the other factors will fall into place.
This concentration on purely financial aspects can lead to investment decisions inappropriate to the life you want to live. After all, money is only the tool which will enable you to achieve the goals or live the life you want to in retirement.
So before making your investment decisions it is important you sort out your non financial priorities so your investments will work for you in the best way possible.
Some of the most important non financial things to consider are:
##1 Leisure
One of the most attractive things about the retired lifestyle is the freedom associated with it. You can do what you want when you want to do it.
At long last, there is no compulsion to do things at or by certain times. You are the master of your own activities.
However, if you don’t know what you want to do with all that free time it can be a real drag. So before you retire you should seriously consider how you are going to occupy yourself.
It is wise to have a variety of interests. For instance, if your main interest is playing bowls or fishing it is important to have other things to do on the days when the weather unpleasant.
Knowing what you want to do with your time is also important if you want your investments to work for you. You can then work out how much the new lifestyle will cost you and arrange your investments to achieve that spending money.
You should also ensure you have enough money ready to hand to cope with the unplanned costs that will appear from time to time. It would be frustrating to have worked hard and have adequate capital and not be able to go for a holiday because it was all tied up in some long term inflexible investment.
##2 Housing
You will probably spend more time in your home during retirement. It is therefore important that it is a comfortable and pleasant place to be.
A few years before retirement, it is therefore good policy to have a good look at your house and see if it is going to be suitable to your new lifestyle.
If there are jobs to be done or alterations or enhancements to be made, don’t hesitate to do them. .
You could look on money spent on your house as an investment in your future comfort. And the way prices tend to rise there is probably no time like the present to make such an investment provided you can afford it.
Some people change houses on retirement. If you are going to do that make sure your new home is going to be suited to your new lifestyle rather than the old.
##3 Health
Good health is important, so have regular medical check-ups and exercise, eat and drink sensibly.
Your financial decisions can affect your health if you invest in areas that cause you worry. So in order not to cause yourself unnecessary stress, only invest in areas you understand and are comfortable with.
Always remember that a little bit of extra return on your money will not be much use to you if you are sick with worry about whether it is safe or not.
You must also keep your financial affairs straightforward right from the start, particularly in relation to any dealings with the tax or social security departments. Remember if they catch you out, it will be at some time in the future, making the resulting investigation even more traumatic.
##4 Friends
Family and friends are important particularly as you will have more time to spend with them. So you must consider them when planning. Living on a deserted beach may be wonderful for a few weeks holiday, but we are social animals and most of us crave company after a time.
So if you are planning to relocate, do your homework thoroughly before you make the move. Remember the people that you leave behind are important, and make provision in your budget for regular trips back to keep in touch with them.
Other matters should also be considered in your planning. They include ensuring your will is valid and up to date, considering a power of attorney, reviewing your insurance needs, and considering the effects of any money you will earn from full or part time employment.
All of these aspects should be considered before you make any of your retirement investments. That way you will ensure the investments you do make are set up to serve you best in the lifestyle you want to lead in your retirement.
The views and opinions expressed in this post are those of the author and do not necessarily reflect all or some of our beliefs and policy. Any links on this page does not necessarily mean they have been endorsed by Defying Mental Illness.
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