If you’re planning on taking a vacation, it’s probably something that you’ve looked forward to for a while now. Maybe you haven’t traveled much since before the pandemic and want to this summer, or maybe you’ve recently retired and just want to relax and enjoy your free time. However you choose to spend your time in retirement, the great thing is that that it’s your 30 or more year vacation. Here are some things to think about when you’re looking forward to summer and retirement.
What Will You Do?
On average, we spend more time every year planning for vacations than planning for retirement – and retirement is much longer than any vacation you will take. Conveniently, you can start preparing for retirement while vacationing. If you and your spouse are traveling together, use the hours on the plane or highway to start discussing what you want your retirement to look like, your goals, and a general timeline. If you have time off, you can “practice” retirement by trying out new activities like volunteering, spending more time with friends and family, or picking up a new or forgotten hobby.
How Will You Afford It?
Think about how you afford your current lifestyle: Do you have a specific budget? Do you plan to maintain your current lifestyle, and if so, how much will that cost? Planning for how you will afford retirement is a detailed process, which is why it helps to have a professional at your side. Start thinking about how much your desired lifestyle in retirement will cost you, and then figure out what your sources of income are and how much they will produce. Begin thinking about when you will claim Social Security and how you will use your retirement accounts. From there, you might see how much income you need to cover basic expenses as well as leisure activities.
How Much Planning Have You Done?
Think of all the details that go into planning a vacation. There are the travel arrangements, the hotel, activities, and setting a budget. While it’s certainly important to enjoy both vacation and retirement, the stakes are much higher when it comes to retirement, and there are even more elements that go into planning this 30-plus year vacation. How much planning have you done so far? Do you have a plan to cover big retirement expenses or a plan to weather market volatility?
We can help you create a plan for the longest vacation of your life. We’ll take your unique retirement goals into account and help you put all the pieces of the puzzle together. If you’re taking the time to plan a vacation this summer, consider also taking the time to come in for a no-cost, no-obligation financial review.