Rules of Retirement to Consider

We’ve followed rules our whole lives. Whether it was listening to your teacher when they instructed you to raise your hand before speaking, your parents rule of looking both ways before you cross the street or being taught to stop at a red light when you finally learn how to drive, rules are everywhere. But, most people aren’t aware of the rules of retirement. Here are 4 rules of retirement to consider so you can be better prepared for what retirement has to offer both financially and socially.

Rule #1: Assume your spending will not go down.

If you think that your spending will decrease in retirement, think again. In retirement, it’s more likely for your expenses to go up rather than decrease. Leisure are bound to go up because you will have more free time for travel and entertainment. Also, healthcare costs tend to rise as you age. Some costs will simply stay the same, things like housing, food, electricity will all still need to be paid for even after you retire.

Rule #2: Plan on getting no more than half your income from Social Security.

Social Security isn’t designed to sustain retirees all on its own. Although it may help pay the bills and offset some costs, it shouldn’t be your only source of retirement income. However, this doesn’t mean that you shouldn’t factor these benefits into your retirement budget, you just can’t rely fully on them. Also, make sure you protect yourself from Social Security fraud.

Rule #3: Know your nest egg’s value.

Looking at just the sum of your IRA or 401(k) that you have amassed does not give you the complete value of your nest egg. By looking at the annual amounts instead of the overall balance, you will have a better idea of your retirement income. This helps ensures that you are looking at it practically and not getting caught up in the total number.

Rule #4: Have a plan before you leave the workforce.

All the free time that retirement brings can be overwhelming to some people. This could potentially become a negative emotion if you have not planning for your time once you retire. Some lifestyle tips include starting a business or focusing on a hobby. Other retirees chose to travel or join a club. Either way, it doesn’t matter so much what you are doing, the fact that you are doing something is what’s important.

Following these rules and having a complete financial plan can help you enjoy retirement to the fullest. At SHP Financial, we can help you create this personalized plan by looking at your financial and lifestyle goals. Click here to schedule your no cost, no obligation review today!

The content presented is for informational purposes only and is not intended as offering financial, tax, or legal advice, and should not be considered a solicitation for the purchase or sale of any security. Some of the informational content presented was prepared and provided by tMedia, LLC, while other content presented may be from outside sources believed to be providing accurate information. Regardless of source no representations or warranties as to the completeness or accuracy of any information presented is implied. tMedia, LLC is not affiliated with the Advisor, Advisor’s RIA, Broker-Dealer, or any state or SEC registered investment advisory firm. Before making any decisions you should consult a tax or legal professional to discuss your personal situation.Investment Advisory Services are offered through SHP Wealth Management LLC., an SEC registered investment advisor. Insurance sales are offered through SHP Financial, LLC. These are separate entities, Matthew Chapman Peck, CFP®, CIMA®, Derek Louis Gregoire, and Keith Winslow Ellis Jr. are independent licensed insurance agents, and Owners/Partners of an insurance agency, SHP Financial, LLC.. In addition, other supervised persons of SHP Wealth Management, LLC. are independent licensed insurance agents of SHP Financial, LLC. No statements made shall constitute tax, legal or accounting advice. You should consult your own legal or tax professional before investing. Both SHP Wealth Management, LLC. and SHP Financial, LLC. will offer clients advice and/or products from each entity. No client is under any obligation to purchase any insurance product.
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