3 Key Ways To Prepare For a Low-Stress Financial Life In Retirement

1. Create a Detailed Retirement Budget

• Estimate Expenses: Start by calculating your essential expenses like housing, healthcare, food, and transportation. Don’t forget to account for discretionary spending, such as travel or hobbies.
• Adjust for Inflation: Factor in inflation for long-term sustainability.
• Plan for Healthcare Costs: As healthcare is a significant expense in retirement, consider insurance options like Medicare, supplemental plans, or Health Savings Accounts (HSAs) if applicable.

2. Diversify and Maximize Retirement Savings

• Max Out Retirement Accounts: Maximize contributions to retirement accounts like 401(k)s, IRAs, and Roth IRAs so long as it fits within your budget and overall financial plan. Take advantage of employer matching contributions if offered.
• Diversify Investments: Allocate your savings across a variety of assets (stocks, bonds, real estate) to minimize risk.
• Consider Income Sources: Identify other potential sources of income like Social Security or rental properties to create multiple income streams.

3. Reduce or Eliminate Debt

• Pay Off High-Interest Debt First: Prioritize paying down credit cards and other high-interest debts before retirement.
• Minimize Mortgage or Rent Payments: Aim to have your mortgage paid off before retirement, or downsize to reduce housing costs.
• Avoid New Debt: As retirement approaches, be cautious about taking on any new loans or major financial commitments. This ensures your retirement income goes further.

These steps can help ensure financial security and reduce stress during your retirement years.

To learn more about how we help families and professionals live a low-stress financial life take a look at our website at leverageadvisory.com . And be sure to follow us on LinkedIn, Instagram, and Facebook for more personal finance tips you can leverage for your financial future.

To schedule a free consultation you can email [email protected] , or text/call 617-356-1852.

For educational purposes only. This is not investment advice. All investing is subject to risk, including the possible loss of the money you invest. Past performance is not indicative of future results. You cannot invest directly into an index without incurring fees and expenses of investment in a security or other instrument. This is not a recommendation. Diversification does not ensure a profit or protect against a loss. Consult with your financial advisor before making any investment decisions.