Retiring successfully means being able to accumulate the retirement nest egg needed for a financially-secured retirement. While planning is the key to retiring successfully, not everyone who plans for retirement is automatically guaranteed to achieve their retirement goals. People who retire successfully display some, or all of the following seven traits:
- They have a clear vision for their retirement – Having a clear vision for retirement means precisely knowing your retirement goals – what age you want to retire at, the kind of lifestyle you want to enjoy after you retire, and the amount of income you will need to generate in retirement to support your lifestyle. Successful retirees work with a financial advisor to crystallize their retirement goals and develop a plan to achieve them.
- They use experts – Creating and implementing a well-thought-out retirement plan requires expertise in various areas of personal finance including taxes, investment, insurance, estate, and debt. Successful retirees recognize how utilizing such expertise can help them maximize their money and improve the likelihood of their financial success. Hence, they work with a financial advisor who can assemble and employ the needed financial expertise in creating a comprehensive retirement plan, and implementing it using cohesive financial strategies.
- They don’t procrastinate – You are never too young or too old to start planning for your retirement. However, the sooner you start, the easier it is to achieve your retirement goals. Successful retirees rise above the reasons why people don’t plan for retirement and start planning as early as possible.
- They live by a budget – A home budget can help you track your expenses and see where your money goes every week, month, or year. A budget can help you avoid any impulsive and unplanned spending that might jeopardize your financial future. Successful retirees carefully plan and prioritize their expenses, and live within their means. They understand how their individual spending decisions can affect their overall financial success.
- They pay themselves first – Paying yourself first means setting aside from your income the amount you need to save for your financial goals, before paying for any other expenses. Successful retirees automate their savings; meaning they have the amount that they need to save every month for retirement automatically deposited from their paycheck into a workplace retirement account, or from their bank account into an IRA, before they have a chance to spend it. They understand that preparing for the future is just as important as living in the present.
- They stick to the plan – Achieving retirement goals requires a steadfast adherence to the plan. No matter what the circumstances, successful retirees remain committed to their plan and dedicated towards achieving their retirement goals. They always follow the plan recommendations timely and precisely, even if doing so becomes difficult at times. They periodically review their plan and update it when necessary, to ensure it always reflects their most current situation and plan assumptions.
- They retire for a reason – Retirement can be devastating if not financially secure, and boring if not busy with the things you love to do. Successful retirees retire not because they have reached the proverbial retirement age, but because they have accumulated the sufficient nest egg they needed for retirement, and they have plans for more fun and fulfilling activities rather than working. They understand why financial independence is important, and how it can turn their retirement years into truly golden ones.
It is never too late for anyone to adopt these seven traits, regardless of their stage in life or financial situation. Doing so could make a world of difference to their quality of life during their golden years.