Why Your Current Income Doesn’t Have to Dictate the Terms of Your Retirement

Retirement is a big decision that leaves little room for doubt. However, preparing to leave the workforce can be challenging, especially if you’re not sure whether you have enough money to maintain your health and quality of life.         

Preparing to Retire With Confidence  

For many Americans, retirement is a promising period of life they look forward to, especially if they no longer have to work full time. Unfortunately, far too few adults ever take the steps necessary to prepare for it. According to the United States Census Bureau, an estimated 50 percent of people between the ages of 55 and 66 have no personal retirement savings whatsoever. 

When you’re in your 50s or 60s and facing a crisis of financial uncertainty, retirement could seem more like a dream than an impending reality. However, you don’t have to accept the potentially catastrophic costs of such unpredictability. We offer these tips to help you prepare. 

Know Your Numbers 

Almost everybody has a rough idea of their regular expenses. However, financial planners almost always recommend that our clients obtain an in-depth understanding of how and where their money moves. 

You can begin making a beginner budget by: 

• Reviewing the deposits and withdrawals in your bank accounts
• Collecting paystubs
• Analyzing credit card statements  

For many people, simply creating a comprehensive budget is the most difficult element of retirement planning. 

Consider Your Goals 

Before creating a retirement plan, you need to identify your long-term goals. What do you plan on doing once you leave the workforce? Will you:

• Buy an RV and travel the country? 
• Purchase a vacation property overseas? 
• Stay at home and invest in a new hobby? 
• Remain an ever-ready consultant for a family business? 
• Work part-time to stay busy?  

One of the greatest challenges in retirement planning is maintaining a consistent standard of living. If you expect to stay mobile in retirement, then your plan needs to reflect the possibility of higher-than-average expenditures. 

Cover Your Contingencies 

Nobody can predict the future, but we can try to prepare for its contingencies. As you plan for retirement, ask your wealth advisor:  

• What would you do if the stock market collapses early in your retirement? 
• How would you be able to afford to stay in an assisted living facility if you can no longer care for yourself? 
• When should you accept Social Security payments, and how does age impact disbursements? 
• Can subsidized health care support you through serious illness? 

Most of us have learned that even the best-laid plans can be compromised by life’s many uncertainties. However, having the right plan—one which reflects your aspirations and accounts for the unexpected—could help you ride out a difficult economy into better times. 

Overcoming Your Retirement Fears 

Even if you don’t have adequate retirement savings, begin building confidence by: 

Minimize Your Tax Obligations 

A 401(k) or traditional IRA can help workers supplement their expected Social Security income. However, retirement benefits are still taxed. Quraishi Law & Wealth could help you minimize these penalties by exploring your eligibility for rollovers and strategically timed withdrawals. 

Manage Your Existing Assets

While you might need additional income streams to fulfill your retirement-related aspirations, you may have to first account for the assets you already own. Schedule an appointment with your wealth manager, create a register of your accounts, and discuss options for reallocation. 

Keep Your Investment Costs Under Control

Financial planners and wealth managers can help Arkansans expand their financial horizons. However, every professional charges a fee, and you should never pay more than you can comfortably afford. 

How You Can Begin Readying for Retirement Today 

A Central Arkansas retirement planning lawyer could help you: 

• Assess your financial resources and opportunities. 
• Create an informed budget that doesn’t deprive you of the right to continue living a fulfilling life. 
• Evaluate your best options to receive Social Security benefits or begin drawing a pension. 
• Start investing in an IRA or 401(k). 
• Use estate planning strategies to minimize your liabilities and begin building a legacy. 

Contact Quraishi Law & Wealth 

You don’t need to have a multimillion-dollar income to begin readying yourself for retirement. However, you cannot afford to delay. For far too many people, retirement planning is a practical necessity that they never execute, leaving them deprived of the resources needed to maintain their health, their wealth, and their standard of living.