Latest News

Your very first year of retirement: Here are 5 things you might not expect — but absolutely need to prepare for

0

S&P 500

3,752.75

+86.97(+2.37%)

 

Dow 30

31,082.56

+748.97(+2.47%)

 

Nasdaq

10,859.72

+244.87(+2.31%)

 

Russell 2000

1,742.24

+37.85(+2.22%)

 

Crude Oil

85.14

+0.63(+0.75%)

 

Gold

1,662.50

+25.70(+1.57%)

 

Silver

19.40

+0.71(+3.80%)

 

EUR/USD

0.9862

+0.0075(+0.77%)

 

10-Yr Bond

4.2130

-0.0130(-0.31%)

 

GBP/USD

1.1302

+0.0067(+0.60%)

 

USD/JPY

147.5500

-2.5400(-1.69%)

 

BTC-USD

19,173.26

+162.81(+0.86%)

 

CMC Crypto 200

435.25

+3.49(+0.81%)

 

FTSE 100

6,969.73

+25.82(+0.37%)

 

Nikkei 225

26,890.58

-116.38(-0.43%)

 

Your very first year of retirement: Here are 5 things you might not expect — but absolutely need to prepare for

You prepare for retirement your whole life — maybe as far back as your teenage years and that first check. You put cash aside. You invest. You live within your means and when the time comes, you downsize. So are you really, truly ready to retire?

That depends.

Even with decades of preparation, surprises are likely to come your way that first year of retirement. Before the unexpected hits, here are five strategies retirees, and those about to take the plunge, need to put in place.

Don’t miss

A TikToker paid off $17,000 in credit card debt by cash stuffing

Chances are good you’re overpaying for home insurance. Here’s how to spend less on peace of mind

The adjustment period

Even if you have a smart plan for retirement, there’s still an adjustment period where leaving the labor force means far less money coming in and more going out. And let’s face it, pre-retirement habits and assumptions can be difficult to change.

If money from government sources and investments represents the upside, then spending habits — with an emphasis on “habits” — are the other. And the two must exist in balance.

Look over your budget before retirement, not after. Where and what do you spend on? What’s your projected cash inflow? Which cuts make sense, especially if they don’t impact your quality of life?

Review everything from subscriptions you stopped using long ago to exorbitant rates for wireless and mobile phone usage. Such moves can bolster your savings cushion when you’re ready to move ahead.

Having to prioritize expenses

Want to travel? It’s a delicious luxury but it’s incredibly expensive when you factor in food, lodging, flights and frequency of trips. Want to renovate your home or buy a seaside getaway? Interest rates on first and second mortgages these days are literally through the roof.

Want to stay healthy? Treadmills and gym memberships cost money — though certainly, prevention is a big bargain compared to a lengthy hospital stay.

Before you break open the coffers and live it up, get a sense of your “nice to haves” versus your “need to haves.” If visiting family you miss comes far ahead of a two-week trip to Paris as priorities go, allow your wallet to follow your heart.

Needing to keep saving

Once it’s time to retire, many folks throw the savings plan out the window of the cruise ship or dream home. That’s the wrong way to go. Saving not only offers a buffer but also a means to make even more aspirations possible.

Read more: ‘The numbers just don’t work’: While rising mortgage rates have some homebuyers giving up, others think they’ve found a workaround

If you once put 10% of each paycheck aside, you could now aim for 10% of each Social Security check. Even just 5% is better than nothing, especially if you invest it wisely. Yes, the stock market is down these days, but as billionaire Warren Buffett advises, it’s also the ideal time to buy stocks that are undervalued and overly punished by nervous investors.

Having a Social Security strategy

If you take your Social Security starting at age 62, you’ll miss out on additional funds you’d reap at a later retirement age, according to the Social Security Administration (SSA).

If you wait until you hit 66, the SSA calculates that you’d reap $1,000 instead of $750. Further, you could receive delayed retirement credits should you wait until full retirement age, which stops when you reach 70.

To be certain, eliminating debt and dealing with health issues might not make deferment possible. But otherwise, it’s ideal.

Requiring a professional’s input

Do you really know more than your doctor, lawyer or home contractor? Just as you take all those answers for granted, nothing replaces a capable financial adviser. Yearly visits should be a given, especially in periods of market volatility.

Your adviser can identify spending problems, assist with your bucket list items and help you shoot for the retirement lifestyle of your dreams. Many also specialize in creating a detailed, three-dimensional view of your situation.

The only caveat here is that some charge frequent fees for frequent, unnecessary trades or might try to sell you financial products you don’t need. It’s important to find an adviser who takes their fiduciary responsibility seriously — meaning that they’ll always put your best interests first.

Putting it all together

It’s understandable, but often regrettable, that new retirees feel an urgency to pack all their living into a do-it-now package. Not only does that make it harder to savor the moment — it also creates an undue stress to do it all, no matter the cost or stress.

No retiree needs to live under that kind of pressure. Financially, emotionally, even spiritually: Pacing yourself makes room for gratitude and decreases the odds that you’ll wind up spent before your time.

What to read next

Should I wait for the housing market to plummet before buying a house? 3 reasons why this housing downturn is nothing like 2008

‘It was tough, scary times’: Baby-boomer financial experts who lived through the Great Inflation recount ways to ride out a recession

Here’s how much the average American 60-year-old holds in retirement savings — how does your nest egg compare?

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Advertisement

GOBankingRates

7 Things Not To Do When You Retire

Some of the first things retirees need to do when they retire include applying for Social Security benefits, checking in on their investment accounts and updating estate plans. On the flip side of the…

Motley Fool

Social Security Is About to Do Something It’s Only Done 3 Times Before

Although Social Security has been around for a really long time, the program tends to evolve from year to year. One change seniors have come to expect is their annual cost-of-living adjustment, or COLA. The purpose of COLAs is to give seniors on Social Security the opportunity to maintain their buying power as living costs creep upward.

SmartAsset

Four Smart Ways to Make Money in Retirement

With many Americans living longer and retiring earlier, more and more people have time, health and energy to work in retirement. And this has led to a surge in retirees doing just that. So whether you need the extra cash … Continue reading → The post Four Ways to Make Money in Retirement appeared first on SmartAsset Blog.

The New York Times

Democratic Secretary of State Candidates Struggle Against Election Deniers

LAS VEGAS — Ted Pappageorge, the head of Culinary Union Local 226, whipped up the crowd of canvassers into a frenzy on a recent Monday morning, earning him “sí, se puede!” chants. But before he sent the canvassers out to knock on doors for Cisco Aguilar, the Democratic candidate of secretary of state, he had a question. “Does anybody know what the secretary of state does in the state of Nevada?” Pappageorge asked. A few murmured “voting” and a half dozen raised their hands. The buzzing quieted,

Yahoo Sports

The Yankees lineup is crumbling beneath Aaron Judge in the ALCS. Does the front office have a plan to solidify it?

A year of half-measures and unproven promises may have full-force, present-day consequences for the Yankees.

Benzinga

With Prices Dropping And Interest Rates Rising, Is Now A Good Time To Invest In Real Estate?

One of the biggest decisions a person will make is whether or not they will buy real estate — maybe a house, rental property, duplex or apartment building. Making such a decision can be very emotional, although it’s very important. It can be both exciting and frustrating to make an offer on a property and be rejected and then to bid on another property and gain exactly what you want. Real estate buyers have been on an emotional roller coaster since early 2021. The global pandemic caused a tremen

Yahoo Sports

The Phillies have marched within two wins of the World Series — and there’s nothing routine about the way they’ve done it

The Phillies may look messy at times. That hardly matters to a fanbase that’s waited 11 years for postseason baseball.

WSJ

Watch: China’s Ex-Leader Hu Jintao Escorted Out of Party Congress

Footage shows former Chinese leader Hu Jintao being accompanied off stage at the Communist Party congress, where he was sitting next to President Xi Jinping. Beijing didn’t immediately return questions on what happened. Photo: Mark R Cristino/Shutterstock

Washington Post

Three weeks after Ian, hard-hit Floridians are still searching for lost pets

FORT MYERS BEACH, Fla. – As the water from Hurricane Ian’s storm surge rose, Joseph Salvaggio climbed into his attic and huddled with his two cats. They stayed there for 20 hours, Mittens and Zoey keeping their owner warm as he waited for someone to rescue them. “We were trapped in the attic with no place to go,” Salvaggio, 83, said. “They laid there very quietly. They were very, very good.”Subscribe to The Post Most newsletter for the most important and interesting stories from The Washington P

AFP

Astros edge Yankees for 2-0 lead in MLB playoff series

Alex Bregman belted a three-run home run and Framber Valdez pitched seven strong innings Thursday as the Houston Astros beat the New York Yankees 3-2 to take a commanding lead in their Major League Baseball playoff series.

Yahoo Celebrity

Matthew Perry tells Diane Sawyer that he’s ‘really grateful’ for ‘Friends’ co-star Jennifer Aniston, who once confronted him about his drinking

Perry has previously praised all his “Friends” co-stars for being understanding.

Motley Fool

77% of Warren Buffett’s $313 Billion Portfolio Is Invested in These 6 Stocks

Few high-profile money managers have a nose for making money quite like Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett. In the 57 years since taking the reins, the Oracle of Omaha, as he’s come to be known, has led his company’s Class A shares (BRK.A) to a jaw-dropping average annual return of 20.1%. The Oracle of Omaha believes diversification is “protection against ignorance.”

Nasdaq Freezes Chinese Small-Cap IPOs After Price Spikes

Previous article

RMDs Will Be a Heavy Lift for Those Who Delayed Them

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News