Is it possible to save too much for retirement? That may seem like an odd questions. However, the answer is…yes. The answer isn’t so much focused on finances, but rather how saving for the future is impacting your life in the present. Sure, we all want to have that seven-figure nest egg, but what if getting requires forsaking a lot within your current life? I’m not saying you shouldn’t budget and be smart with your money, but don’t get carried away with it. In other words, don’t be afraid to take a vacation from time to time. Or go out Continue reading Can You Really Save Too Much for Retirement?
Retirement is not what it used to be. Back when your parents retired, chances are they weren’t counting on a retirement that would last decades nor did they most likely plan on having a huge nest egg to get them through. For those of you either working towards retirement today or on the verge of it, you probably know that things are much different today. Having enough saved up is a legitimate concern for the majority of Americans when it comes to retirement. Even if you think you’ve planned enough, there are still various areas that a savings gap could Continue reading Are You Prepared for Gaps in Retirement?
Don’t spend more than you make. It’s one of the basic tenants of being financially responsible. Yet, many people don’t realize that such a practice doesn’t mean you have to be cheap. No, you don’t need to drive a cheap car. No, you don’t need to give up a small daily luxury (Starbucks, anyone?). Yes, you do still need to be smart with your purchases. However, that doesn’t necessarily mean you have to be a miser or penny-pincher. Too often, people equate living within their means with being frugal and cheap–sometimes way too much in that direction. Many think that Continue reading It’s Not About Being Cheap; It’s About Living Within Your Means
How do you define retirement? I’ve asked that question many times over the years on this blog. After all, it’s a very, very important question. How you define retirement and the reality of it really turns out to be can have a huge impact on how you enjoy your retirement years. That’s why it’s vital that you put a lot of effort into answering that question and that you should be thinking about that definition well before you reach your retirement years. There are a lot of ways to go about creating a definition and it’s not uncommon for people Continue reading What Is Retirement to You?
They say that retirement is a time to let things and to relax. However, that isn’t how reality works. Unless you are filthy rich, you will have to keep money on your mind when you get into retirement. That can mean a lot of things, from how much you have saved to whether you can afford certain luxuries (i.e. vacations, nice cars, constantly dining out, etc.). Reminding you to keep your money on your mind, though, does not mean I am encouraging you to worry about your money, though. There is a big difference between fretting about your finances and Continue reading Keeping Your Money on Your Mind
Do you see yourself staying in your current house in retirement? It’s not uncommon for retirees to seek to downsize during retirement. Reasons for doing so often focus on cutting costs, reducing maintenance work, and relocation a different locale or region. Furthermore, it can be tempting to use the profit from a home sale–especially if you live in a seller’s market–to pay down debts or add a boost to your retirement savings. For example, for an empty nester couple with a 2,500-square-foot house and a mortgage to pay off, the profits from the sale could go a long way towards Continue reading “Rightsizing” Retirement
Retirement can test a marriage, especially if both spouses retire at the same time. Not only will you find yourselves spending a lot more time together, but you may also both have different ideas of what retirement should be. It’s therefore important that you and your spouse have similar ideas regarding what retirement will be. You don’t have to have identical views, but they should be similar enough as to be compatible and not the cause of any serious issues. Getting on the same page doesn’t just happen overnight, either. It takes time and many conversations with your significant other Continue reading Are You and Your Spouse on the Same Retirement Page?
For many Americans, a career defines you. It’s what you do; it’s what people know you as. People often recognize each other by profession–as a doctor, lawyer, firefighter, soldier, police officer, etc. These identities follow us throughout our working careers and can shape the way others interact and form opinions about with us. While these identities don’t necessarily go away when you retire, people begin to disassociate them with you, since you are no longer out there working. Instead, new identities begin to emerge as life evolves. In retirement, many people often pursue hobbies and interests with a renewed passion Continue reading You WILL Have a New Identity in Retirement
Believe it or not, not everyone ends up enjoying retirement. There are various reasons why one may not enjoy retirement, but more likely than not the root of an unhappy retirement is money. Whether it’s not having enough saved at the start or worrying about whether you will have enough later, financial worries can really do a number on your ability to enjoy your post-career life. It’s a good reason why you should focus on your money and finances before you reach retirement. Having a plan for building your nest egg as well as how you will spend it will Continue reading Will You Have a “Happy” Retirement?
We’re gonna remain with the “having a plan” theme, much like yesterday’s posting. However, today’s posting is going to focus more on the flexibility of your plan and not so much the content. Chances are you have a plan when it comes to saving for retirement. You probably have a few goals and benchmarks as a part of that plan and most likely developed it after lots of research and with the help of a financial advisor. However, that doesn’t mean that it your plan is strong. How do you think it could handle a major life change or crisis? Continue reading How Strong is Your Retirement Plan?