Will You Be A Financial Burden To Your Kids?
April 3, 2017
In an ideal situation, you will be able to afford to retire right on time and live a carefree lifestyle in retirement free of financial concerns. In realty, however, many people have failed retirement prioritize planning efforts. These may be individuals who failed to properly plan and save the full amount of money needed for retirement. It may also be people who had a great plan but who failed to stick to the plan. The thought may have crossed your mind that you have no other choice but to be a financial burden to your kids as they themselves are approaching retirement and should be focusing their own funds on their financial future. If this thought has entered your mind, consider these points to get back on track.
Determine How Much Money You Need
There are various strategies that you can implement to plan for retirement and to fund your retired years. Some plans may require that you have significantly more money saved up than others. For example, many people have plans to pull regular distributions out of a retirement account in their retired years. However, there are alternatives that may require you to live on far less money. For example, you could use your limited nest egg to purchase a few rental properties with loans. The loans allow you to purchase assets with leverage so that you can maximize your return. Explore different financial plans for various types of investments to determine which option may be best for you.
Have a Backup Retirement Plan
It is imperative that everyone develop a backup retirement plan, regardless of how financially secure you may believe yourself to be. Many plans can go haywire because of fluctuations in the economy and other related issues. A backup plan may include a strategy for living frugally on a bare bones budget, working for longer than you had planned at last on a part-time basis and more. Retirement is a lengthy period of time, and a lot can go wrong in those decades. You must always have a plan of action for a worst-case scenario.
What to Do If Your Retirement Planning Efforts Are Falling Behind
If you have determined that your retirement planning efforts are falling behind, you may understandably be stressed about your failed retirement prioritize planning strategies. First, remember that you are under no obligation to retire by a specific date. Many adults are working on a full-time basis into their 70s, and many others are working beyond this on a part-time basis. This strategy can directly offset the amount of money you need to retire on. You can also focus on decreasing your expenses as much as possible. If absolutely necessary, consider moving in with an adult child while continuing to work. This way, you may not be a financial burden to your loved on as you will pay all of your expenses. However, your adult child may help you to get back on track by eliminating household expenses and potentially food from your budget.
There are many things that can result in falling behind in retirement planning. You may have simply started planning and saving too late in life. Perhaps you have been hit hard by a disaster, an economic downturn has impacted you or something else happened to throw your efforts off track. Take time to consider each of these points in an effort to readjust your efforts for maximum benefit.
Eric and Jennifer Lahaie
JEHM Wealth & Retirement
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