The way we budget our money and plan for the future necessarily changes over time. When we’re younger, we often take on some debt for education, to buy houses, or to otherwise invest in our long term goals. In mid-life, we hopefully approach our earning peaks and pay down (or off) our old debts while raising our own families (often taking on new debt). Once our nests are empty, we can start looking in earnest at how we want to retire. Hopefully, we’ve been putting away something for this time as we moved along.
Our ideas about retirement are likely to change over time, and really change when we start to make a budget for our “fixed income” years.
Think for a moment about your vision of retirement. To start, add up 25 years worth of realistic retirement income and add your other assets (social security, IRA’s less taxes, plus savings and other investments like home equity, stocks, and collectibles), then divide by 25 to get a rough average annual available allowance. Now think about your annual expenses (housing, food, transportation, recreation, and medical including insurance). Can you stay in your current home? Will you be able to buy a new car when you need one?
So what things are non-negotiable in your retirement budget, and what can you do to assure you will have them? What things do you think you might change to make retirement more comfortable? (Ideas: a smaller home or car, shorter vacations, eating more meals at home?)
As part of my retirement theme, I offer this weekly Thursday “Future Challenge” to get people of all ages thinking in general about their futures and/or retirement. Each challenge goes with a post of my own on the same general topic. Hopefully we’ll start some interesting discussions!
If you’d like to share what you think, or post on it, that’s great – and I’d love it if you’d share those thoughts in a post or comment (please tag posts TRS Future Challenge and link to this post) so others can also see them.
If you choose not to share them, that’s fine too – but with any luck, you’ll still gain some insight on where you’re headed (or would like to be), and how you can get the most out of your own journey.
Here are a few related posts and articles, along with the ones listed in my post referenced above… a lot to think about!
- 5 Ways to Make Retirement Feel Real (minyanville.com)
- CashNetUSA | Top 5 Ways to Manage your Money after Retiring – CashNetUSA (cashnetusa.com)
- TurboTax – The Golden Years Guide to Tax-Free Retirement (turbotax.intuit.com)
- Retirees Will Spend Final 7 Years in Poverty, Study Says (thestreet.com)
- CashNetUSA | Personal Tips for Saving Towards Retirement – CashNetUSA (cashnetusa.com)
- Will You Be Able To Retire At 67? (nationaldebtrelief.com)