How close are you to retirement? Is it just around the corner or is it still years away? Regardless of how you answer that question, planning for retirement is something that everyone should do. And waiting till you’re 55-years-old isn’t a good idea. It’s best to start that plan as early as possible. The sooner you get started the better off you will likely be when retirement finally comes.
Planning for retirement consists of several important decisions and of course the plan will be different for everyone. However, there are three crucial life decisions that everyone will need to make regarding retirement, the consequences of which will determine how much you enjoy your retirement.
First off, you will have to decide how you want to live: lavishly or frugally. Almost everyone would love to live a lavish lifestyle. It’s the stuff dreams are made of. However, most people will never have that opportunity. But anyone who does want to live more lavish lifestyle in retirement has to make sure to save enough along the way. Retirement can last many years, so you need to save enough to cover those expenses. If you want the lavish lifestyle, you’ll have to save a lot more.
Another important decision in retirement is whether or not to downsize your home and your possessions. Of course finances will play a big role in this decision, but so will location, both yours and your extended family’s. Downsizing could help you save money on living expenses and could also add to your savings if you make a nice profit on your home.
Lastly, your decision to work with a financial advisor could play a huge role in your retirement. It’s vital for retirees to make wise financial choices, including with their investments, which is why starting or continuing to work with a financial advisor is a very smart move both before and after you retire.
The post How Three Important Life Decisions Will Affect Your Retirement first appeared on Advisors to the Ultra-Affluent – Groco.