On this episode of The Retirement Huddle podcast, Mark Howard shares some reality checks you need to know about your retirement dreams.
Manage your expectations.
Just because every TV commercial about retirement shows people on a beach or a boat, doesn’t mean that this is your retirement reality. Understand what reality looks like for you so that you can retire with the proper expectations instead of disappointment.
There are people that come in and want a very grandiose retirement, and we are going to be very realistic with them about where they are.
This doesn’t just apply to glamorous vacations—it could also apply to people who want to leave a big inheritance or move to an exclusive retirement community. That’s not feasible for everyone.
Account for your changing expenses.
How much have you thought about all the things that will be changing with your monthly expenses once you retire? Some of these changes will add to your monthly expenses, and others will decrease your expenses. But they’re all potential changes that need to be considered.
- Health insurance now paid for by you instead of your company?
- Cell phone previously paid by your employer?
- Company car that you no longer have?
- Decreased commuting costs?
- No longer eating out for lunch every day?
- Increased travel expenses?
Changing your game plan.
Your retirement game plan will not stay exactly the same. Depending on what is going on in the world, things need adjustments. It’s crucial to have a flexible plan. Life happens and unexpected things come up. The market changes, health changes, and our priorities change.
Be sure you know what you want to spend instead of just assuming that it will be a certain percentage of your current expenses.
Listen to the full episode or use the timestamps to jump to a specific section. Thanks for listening! We’ll be back for another show every other Thursday.
[0:55 ]– Manage expectations
[3:01] – Changing expenses
[5:21] – Changing game plan
[6:53] – Financial planning help