Life after retirement can be fascinating. You finally have time to check off the big things on your bucket list. Enjoying retirement goes beyond enjoying financial freedom, it involves overall well-being. Here are some strategies for a healthy and financially secure retirement.
Align your fixed expenses and fixed income
After retirement, you should be able to pay your fixed expenses such as insurance with funds from your fixed income sources. If your fixed expenses exceed your fixed income, you will be forced to withdraw from an investment portfolio. If you sell your stock in a down market, you could end up ruining your retirement plans.
Keep enough money safe and liquid
Storing some of your cash in savings or money market accounts can help you ride out a recession without pulling money from investments that have lost value. So how much should you keep liquid? It should be enough to cover at least three years of expenses.
Tune out financial news and consult a professional
Often, the media sensationalizes normal market volatility publishing generalized numbers that do not reflect individual investments. Panicking over headlines leads to making impulsive decisions which are often bad for your portfolio. Tune out the news and review your investments. Make sure that the level of risk is right for your stage in life. You can access the latest news in the stock markets, company profiles, financials and more on stock message boards such as Investors Hangout
It is always advisable to seek the services of a reliable financial advisor. A professional will advise you on the best investment strategies for your goals. If you have enough money for retirement, you can be directed to conservative investments or a more aggressive fund if your goal is to maximize returns.
Adopt a pet
Interaction is important. Retirees who live alone risk isolation and loneliness which is detrimental to their overall wellbeing. To fill your days with unconditional love and affection, adopt a pet.
Have a plan for how you will spend your time
Retirement not only robs you a source of income, but it also takes away your source of social interactions. Without a work routine, you need to create a plan for how you will spend your waking hours. You could always go back to work by getting a part-time job, or you could take the opportunity to see the world.
You need to start enjoying the fruits of your labor. If you have been nurturing a saving culture all your life, using the money may be odd.
Do not underestimate the cost of healthcare
Healthcare expenses rise as you age. To ease this burden, the government offers Medicare to retirees at or past the age of 65. If you are younger than that, you have to finance your own coverage. Medicare does not also cover everything. As you retire, you should have a solid plan of how you are going to cover the cost of your healthcare.
