Retirement Lifestyle by Design
Published on May 16, 2017
You may spend your work days dreaming about the day you retire. However, the only way to make your retirement lifestyle dreams come true is to plan ahead. That means being proactive about your retirement savings—and that you should start saving now. The earlier you start saving, the better off your retirement plan will be when you’re ready to use it.
For example, if your company offers an employer-sponsored 401(k) plan, contribute the maximum allowed. Other steps to consider: add to your retirement savings with an IRA, reduce your debt, and lower your living expenses. Sometimes these are easier said than done but remember, if you’re dreaming about retirement then now is the time to take the steps to make that dream come true.
Consider what you would like your retirement to look like:
- Living in the style you would like to grow accustomed to. Will you be living in the lap of luxury? Or, will you maintain a relatively simple lifestyle? If you dream of cruising around the world during your golden years, this is something you need to account for when you’re saving for retirement. If instead, you dream of a nice place to live with some hobbies or volunteer work to keep you busy, you may be able to manage with less retirement savings than a lavish retiree will need. Use a good retirement calculator to help figure out how much you need to save to reach your financial goals or check out a retirement planning checklist to help determine the right amount of savings for you.
Test the waters; try living now on the amount of funds you have determined that you need. Recalculate, if necessary
- Leaving home. Now that the kids are out of the house, consider whether you want to stay in your current home or downsize. This is more than a financial decision. Yes, there are housing maintenance costs to consider as well as the wear and tear on you of taking care of more house than you need. But, you will also need to consider how you feel about moving out of the family homestead. Other factors when deciding where you will ultimately live include proximity to family and friends, recreational activities and conveniences. And, be sure to consider how your needs will change over the course of your retirement.
If you own your home, right-sizing may be a good financial decision since it will free up much needed capital.
DIY Savings Through Self-Direction
No matter what you think your retirement will look like, savvy investors should plan and control their future today. One way to have more control over what your retirement lifestyle will look like is with a self-directed retirement plan. If you understand alternative investment options, a self-directed IRA can be a great way to build retirement wealth more aggressively to fund your retirement dreams.
A self-directed retirement plan allows individuals to include a broad array of nontraditional assets that they already know and understand such as real estate, mortgages and other loans, private hedge funds, precious metals, limited partnerships, commercial paper, notes, and more.
For information about ensuring that your dream retirement lifestyle is on track through self-direction, contact Next Generation at (888) 857-8058 or Info@NextGenerationTrust.com. We do not give investment advice and strongly recommend you consult your trusted financial advisors about whether a self-directed Traditional or Roth IRA, SEP or SIMPLE IRA, or a self-directed 401(k) is best for you.