Dieters, frustrated novelists, and daydreamers know there’s a world of difference between intention and action, action and follow through. Those preparing for retirement do too. So the next time you hear yourself or a soon-to-retire friend say that he’s ready to let some big things go, pause.
Then ask, “Really?”
For those serious about retirement done right, the preparation isn’t just financial. You can try to play golf for the rest of your life or rest on your laurels from your work achievements. But the experience will not be as rich or grounded in your new reality.
So what should you prepare to part with? And can you do it? Let’s see if it resonates or resists these three realities.
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say sayonara to things
If you really think whoever dies with the most toys wins, then you may not have given much thought to whether that comes with an everlasting storage locker.
The fact is, excess stuff will only weigh you down, especially if you want to travel or spend more time tending to your relationships (more on that in a bit).
Retirement marks an ideal time to take inventory. How many trinkets have you accumulated? Do you really need them? (In most cases, probably not) What is keeping you from parting with them: logistics, emotions, or some combination?
Taking the first step to reduce excess possessions, especially collectibles and expensive items, can also increase retirement savings.
you are no longer your career
Retirement means a welcome end to overachievement and borrowed identity. We’re not ourselves at work, and making back eight hours a day leaves many people surprisingly stumped in terms of how to redeem it.
And no wonder If you’ve worked nearly your entire life to achieve a career goal, win the awards, gain the status, and reap the benefits, then chances are much of your identity is tied to your career. Plenty tied. Letting go of a rewarding occupation is difficult.
Plus: Are you ready to give up the adrenaline rush of hard work? Or the recognition that comes when someone asks, “What do you do?” Or the satisfaction that your work gave you?
If you’re not so sure, you’re in good company. A survey cited in USA Today found that 47% of retirees were still working in retirement, and a whopping 72% of early retirees said they would want to keep working.
In fact, some people never retire in the traditional sense; athletes also often come out of retirement. When figuring out what works for you, keep in mind that regardless of how you structure your golden years, immersing too much identity in your career will raise questions you don’t want to ignore.
Read more: Here’s how much the average 60-year-old American has in retirement savings. How do his savings compare?
All that disposable income
One of the main reasons many retirees don’t want to stop working has to do with income security. What happens if you get sick? Does your partner lose his job? Or does another emergency come up that means you need cash? Having a job often takes the sting out of such scenarios.
Meeting with a financial adviser before retirement: decades before, if possible, is crucial. They can help you determine a dollar savings goal to ensure the quality of life you want and find a balance between checking off wish list items and saving for emergencies.
Currently, 48% of workers believe they don’t earn enough money to save for retirement, according to statistics cited by annuity.org. What’s worse, 22% of Americans only have $5,000 or less saved for retirement, while 15% have nothing at all. Combined, that’s more than a third of the workforce.
While Americans struggle with low savings, Social Security, pensions (where applicable), and other financial assets can provide financial relief. On the other hand, expenses that went unnoticed for years (real money wasters, like unused memberships and subscriptions, for example) are now ripe for a bit of picking.
Real Retirement Wealth: It’s All About Relationships
Recent retirees who have reached 60 often struggle with the belief that their best years are behind them. The thought of cutting ties with work and its myriad distractions can be terrifying. Why is this?
Consider for a moment the strong bonds we form with co-workers and what happens to them when we retire. This truth is the key to a rewarding, exciting, and happy retirement: Now you have time to double and triple relationships.
The Harvard Study of Adult Development has followed two groups of men for 80 years, making it one of the most remarkable longitudinal studies in history. His most recent conclusion is irrefutable: the most satisfied people in their relationships at age 50 were the healthiest at age 80.
Retirement is a time to let go of the stress of work and instead emphasize relationships. If he spent his career hoping to get rich, but didn’t, this is the way to do it. Money can buy quality of life, but not quality time.
If you are financially secure, good for you. The race is run. You are now in an ideal position to reap investment benefits of a different kind.
A golden option for your golden years
With the economy in such a volatile state amid high inflation and stock market uncertainty, your 401(k) or IRA—and your own retirement—could be at risk.
You could try adjusting your retirement accounts for better protection, but there’s a lesser-known alternative that could pay off big.
A Gold IRA is a type of individual retirement account that allows you to invest in gold and other precious metals in physical form, such as currencies, instead of stocks, mutual funds, and other traditional investments.
It is a great alternative because unlike the US dollar, which has lost 98% of its purchasing power since 1971, the purchasing power of gold remains more stable over time.
Opting for a Gold IRA gives you the opportunity to diversify your portfolio and stabilize your finances, and gold tends to carry less risk than other alternative investments.
If you want to open a Gold IRA, there are accredited services that will allow you to roll over your current 401(k) or IRA into this new account. To qualify, you must be over the age of 59 and have at least $70,000 to roll over.
This article is for information only and should not be construed as advice. It is provided without warranty of any kind.