No one can just flip a switch at age 65, quit his or her job and then start to relax on the veranda with an ice-cold lemonade every day. Before retirement, there are many different plans to make and strategies to put into place. While your individual concerns can vary depending on your situation, there are some common concerns faced by almost every pre-retirees.
Most pre- and post-retirees don’t plan to spend all their savings and liquidate all assets during their retirement. For the most part, retirees want to leave behind a legacy to their heirs. But as the economy constricts and it becomes harder to save money for retirement, the thought of leaving a legacy behind becomes a less practical desire.
The plans that a retiree can make in order to provide a legacy to his family after death will vary depending on many things. Some questions that pre- and post-retirees must ask themselves include:
Financial freedom is a concept a lot of people think about, yet it’s hard to define. For some, financial freedom may be the ability to pay bills without having to work. Others may consider it the ability to work at a job they love or being able to support a particular cause.
Let’s take a look at what financial freedom may mean for you as well as some ways to achieve this goal.
Know what you want to accomplish.
If you didn’t know where you wanted to go on vacation, you could spend your weekend or your week driving aimlessly on the highway before coming back home. While it was nice that you had an idea of what you wanted, a lack of planning held you back from realizing your dream trip.
The same concept is true for your money. It’s nice to think about making money or having enough money to last a lifetime but you need a plan to make it happen. Therefore, the first step in your journey to financial freedom is to write concrete goals and how you will achieve them.
Rodney Brooks, of the New York Times published a book called ‘Is one million dollars enough?’ reminding us that there isn’t one answer for every scenario. Brooks points out, “If you want your retirement to be the same lifestyle as your working life, you must save and plan.”