There is nothing better to look forward to as you get older than your retirement. There are lots of things for you to do when you retire. You can have a vacation, travel, or just chill and relax somewhere. You have all the time in the world. However, there are things that you need to do and plan when you retire. There are also myths that you need to debunk in order for you to experience the best of your retirement.
1. Planning only on the year of retirement
This is one myth that you should ditch. Planning is a very integral aspect before you retire. It is during this phase that you set things straight and create goals during retirement. Failing to plan ahead will put you to doom. A year of planning is more than enough to make your retirement worth waiting.
2. Settle for 1 million dollars as savings
Sure 1 million dollars is a pretty huge sum of money, but this is not enough to last for the rest of your life. The prices are getting high and with a stumbling economy your savings will get exhausted before you die. Seek the advice of financial advisers and both of you will draft how much you will need for the rest of your life. Depending on your cost of living, you will probably need more than a million.
3. You can plan your retirement by yourself
As mentioned earlier, planning is very critical when you opt to retire. However, planning alone isn’t the best idea. Yes you can have the best plans for yourself, but you will certainly overlook some factors that experts have already studied. Sometimes people from the outside can see what you can’t. By having experts and advisers guide you, your plan will surely be and effective and fruitful.
4. Withdrawing your savings in lump sum is a great idea
Depending on how you use the money, withdrawing a lump sum may not be a good idea. However, if you do not need the money at the moment it will be a bad idea to withdraw it as a lump sum. Taxes will be high when you withdraw it, thereby decreasing the amount that you will get. Also, it will be easy for you to spend money as it is readily available. Withdraw systematically and save this money for emergencies or unplanned expenses.
5. Retire when you are at age 65
You might think that being 65 is old, but you are wrong. There are a lot of things you can do when you are 65 years old and you can be as productive as you can be. Try to delay retirement until the age of 70. When you reach this age, you will not only have big savings but you can also get more from your Social Security benefits.
Retiring can be fun. Do not be misled by myths about retiring. Always check your facts and don’t be afraid to seek professional advice. Myths may be based on truths, but somehow it is better to search for the truth than be entangled by these myths.