Finance Update

How to plan for retirement and be happy

Do you know the secret to a happy retirement? This stage of your life is still too far for you, you will tell me. On the other hand, do you prefer to rely on strangers to tell you how your retirement will go? Here’s how you can plan for your retirement and be very happy.

You’ve waited your whole life to experience this moment.

Know that the steps to planning a happy retirement are not that complicated.

The 4 steps to optimize the preparation for your retirement

Let’s look together at some basic tips to optimize the mechanics of preparing for your retirement:

  • start with your life plan;
  • make your budget;
  • stay curious and give new meaning to your life;
  • invest your funds.

What is your life plan ?

First, why do you need to have a life plan?

In fact, to have an enjoyable retirement, take time to reflect on what makes you happy.

Take this opportunity to achieve the life of your dreams .

Put in place all your means to achieve this.

Where is your money going?

You’ve probably made a budget at some point in your life. You wrote down your income and expenses so you know where your money was going.

Preparing for your retirement is no exception to this monthly cash flow rule.

You will notice that your retirement priorities will change.

Indeed, you will spend less for certain budget items. On the other hand, other significant expenses will be added.

The best way to plan your retirement and be very happy is to prepare in advance. Make a retirement budget!

See what your retirement cost of living may look like to avoid costly mistakes.

My little thing: live like a pensioner 5 years before your retirement  .

By doing so, you will see if your plan is realistic and working. If corrections must take place, you can do them immediately without experiencing them directly during your retreat.

Always stay curious to plan your retirement and be very happy

Your retirement is the best time to try new things. Try to open your horizons to have interests that motivate you and keep you young and healthy.

Sharpening your mind to stay up to date with changing new technologies is another way to boost your intellect and feel useful and happy.

Personally, I think that traveling will be a way for me to always remain curious and open to other cultures.

Invest your funds well

Even in retirement, you must stay away from financial worries. To achieve this, you will establish your investment objectives and your risk tolerance.

These 2 types of data often change when you retire. You will be able to reduce the volatilities of your portfolio. On the other hand, avoid reducing your proportion in action to 0%.

For a retiree, I suggest a minimum of 25% of your portfolio invested in the stock market.

Until your retirement arrives, make automatic savings every month. By doing so, you will succeed in reaching the right amount that will be used to produce your annual pension for your old age.

How to plan for your retirement and questions to ask yourself

To allow you to plan your retirement correctly and be very happy, you must constantly keep in mind these 3 questions:

  1. how much money do you have today?
  2. how much money do you want to have when you retire?
  3. how much money do you need to accumulate to meet your needs?

Rest assured, planning for your retirement can be kept simple.

You just have to ask yourself the right questions and above all, find the answers to them.

How much money do you have today?

Everything must start with this question to successfully plan your retirement.

To answer this question, the ideal is to complete your personal balance sheet. By knowing what you own, you will be able to know your assets which can be used to finance your retirement fund.

How much money do you want to have when you retire?

As you were able to see above, establishing your cost of living at retirement is important in establishing your retirement plan.

What will be the estimated cost of living to live the retirement of your dreams?

In fact, if you know your retirement desires, it will become very easy to know how much money you will need to finance this new cost of living.

How much money do you need to accumulate to meet your needs?

To this last question, you must ask yourself:

How much money do I need to reach my retirement goals.

By having the answers to the 2 previous questions , you know:

  • the amount you need in retirement;
  • the money you currently have.

Now you need to calculate how much is missing between the two!

In fact, it is a question of updating your monthly savings to arrive at the desired amount. It may seem a bit complicated, I admit  .

You will thus know the annual amount necessary to set aside to live well in your retirement and according to your wishes.

To help you even more, I have produced an article on financial mathematics and annuities which will allow you to calculate these amounts.

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