Most people work all their lives to reach the moment when they can finally walk out of the office for the last time and start living a life of leisure. The question is, will you be ready for retirement when the time comes? Without proper retirement planning in Sacramento, CA, the answer could be “no.” Here are a few things to consider before you hand in your retirement papers to the human resources director at your office:
- Develop your retirement budget: Before you retire, it’s essential that you know roughly what your monthly expenses will be in the future. A good place to start is by looking at what you currently spend each month while you’re still working. Once you know that, you can start to get a better idea of what your expenses might be once you’re not earning a weekly paycheck. The last thing you want is to run out of money and have to go back to work!
- Know how much you need to save: Hopefully you started saving for retirement a while back, so you could be ready for your last day of work. Your savings will hopefully make up a good portion of what you’ll be living on for the rest of your life, so you’ll want to make sure you have enough money in the bank to live a comfortable lifestyle. Factor in your monthly expenses as well as your plans for the future.
- Find out what your retirement income will be: Assuming the government doesn’t eliminate Social Security in the next several years, you should be able to count on getting a monthly check as a reward for all of your years of hard work. You may also be able to count on a pension from your old company. That will be a nice little bonus each month to help pay for your bills and all of your fun retirement activities!
- Keep an eye on your accounts: Knowing how much money you have in your portfolio is important at any age. But it’s extremely important to have a good idea of how much you have saved in various accounts once you’re not working anymore. Again, the last thing you want is to run out of money and have to return to the working world.
- Know what you’re going to do in retirement: Okay, so this one doesn’t have so much to do with retirement finances as the others. However, having a purpose after you retire is one of the keys to living a successful post-work life! Whether it’s traveling the world, volunteering or spending time fishing, have something to do instead of just sitting around watching daytime TV all day.
Ernest Hemingway is believed to have said, “‘Retirement’ is the ugliest word in the language.” Only the retirees can tell us if that’s true! We want everyone to be knowledgeable about retirement so they can prove whether or not Hemingway was right. Give Yoder & Co., CPA a call today to get started with your retirement planning in Sacramento, CA!