Retirement Inventory: 7 Components of a Prosperous Retirement
Prosperity is more than financial wealth, it’s your overall well-being.
Prosperity includes everything from your physical health to the way you live your life.
You will need more than money to establish a well-rounded lifestyle in your golden years.
So, if you want to achieve an abundant way of life, here are the components of a prosperous retirement.
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Lifestyle is a major component of a prosperous retirement. In order to have a well-rounded life in your golden years, you must create the lifestyle you desire in the years leading up to retirement. When you fire your boss, you gain 40+ hours a week to engage in the activities and hobbies you desire.
Retirement is your time to relish in your accomplishments and spend your time doing the things you love. Whether you want to travel the world or build model planes in your wood shop, you can spend your time any way you like.
While you save and invest for your retirement, you should also consider your ideal life. It’s up to you to design your lifestyle in retirement. You will work hard your entire life - retirement is the time to reap the benefits of your hard work.
Your streams of income will support your lifestyle in retirement. Your income will help you live a prosperous retirement without being forced to supplement your income and have to go back to work.
Many Americans rely solely on federal-funded programing to supplement their income in retirement. However, this is not the only source of income you should focus on.
A decade ago, the oldest baby boomers began turning 65. Since then, approximately 10,000 baby boomers have celebrated their 65th birthday every day. According to the Pew Research Center, it’s projected that the last of this generation will reach 65 by 2029, establishing that 18% of the population is 65 or older.
With the growing population of retirees, it puts tremendous stress on federal funded programs such as Social Security and Medicare. This doesn’t mean that your benefits won’t be available, it means you may receive less than you expect.
All this to say, if you’re counting on this source of income, you should plan to have other avenues of income available as well. Your other income options include dividends, annuities, investments, real estate, your portfolio, retirement accounts such as an IRA, and earned income.
Relying on one source of income can lead to financial stress if you’re not careful. The more income avenues you have, the more potential you will have to fund a prosperous retirement.
Your risk tolerance is defined by the amount of investment risk you are willing to accept in order to achieve your goals. For example, an aggressive investor is willing to risk more money to reap greater rewards, while a conservative investor feels more comfortable with investments that maintains their original investment. These investments could include cash or bonds.
Throughout your financial journey, your risk tolerance will change. As you age and head into retirement, you may want to consider a more conservative investment path to minimize the risk of losing your entire portfolio in a down market.
When you’re younger, you have more time to recuperate your losses in a down market. As you age, you may not be willing to take the chance with your retirement savings. That’s why your risk tolerance is an important component of a prosperous retirement. Not only will minimizing risk potentially help conserve your assets, but it will give you peace of mind.
The Right Protection
While many pre-retirees are spending their days focused on financial planning and saving for retirement, they often forget the importance of proper insurance. From suitable health insurance to the right life insurance coverage, insurance should be a top priority.
For example, you may assume that Medicaid will take care of all of your health care needs; however truthfully, it may be inadequate alone. Health care tends to be the largest expense in retirement. Purchasing a Medicare supplemental insurance policy can help ease the burden of additional expenses.
Additionally, many retirees think that once they hit retirement they will no longer need life insurance. This is also an incorrect assumption. Life insurance assists policyholders in paying off debt, protecting loved ones in case something happens to the insured while simultaneously allowing them to leave a lasting legacy to their heirs. It is a good idea to carry coverage throughout your golden years.
Working with an insurance expert, like JRC Insurance Group, can help you identify the best retirement insurance for your needs. Selecting the right insurance will enable you to have a worry-free retirement.
How many employers will you have over your lifetime? According to the Bureau of Labor Statistics, baby boomers held an average of 11.7 jobs from ages 18 to 48. Over the course of a lifetime, it may be a challenge to keep track of and monitor all of your benefits. Losing track of your benefits will cause you to lose money.
Take the time to review your employment history and discover any benefits you may have forgotten. You can also visit USA.gov to search for unclaimed money you are entitled to.
Once you reach retirement, it doesn’t mean you’ve crossed the finish line. You still need to budget, set goals, monitor your investments, and pay taxes. These financial tasks require the expertise of financial professionals.
If you’re not currently working with a financial advisor or tax professional, hiring one once you retire is a key component of maintaining a prosperous retirement. Not only can a financial professional help you with financial planning, they can also give you support and guidance when faced with tough financial decisions.
Having financial professionals on your side can ease any transition you may face as well as increase your financial confidence as you embark on unknown territory.
Just because you’re no longer working or trying to advance your career, doesn’t mean you should stop growing. Learning and advancing your skills may give you fulfillment and purpose. It may help you explore hobbies, activities, and opportunities you might have never previously considered.
Your retirement is your time to shine and grow. It is a time in your life when you can continue to discover new things and interactive with new people. Continued growth will help you live a prosperous retirement.
The Bottom Line
Adopting these components will help you achieve a prosperous retirement. Not only will these components help you become financially secure, but they will give you peace of mind and the fulfillment you desire when heading into your golden years
At JRC Insurance Group, our agents are experts with multiple years of experience. We are appointed by dozens of top-rated life insurance companies and our agents are not pushy salespeople.
Our agents do not have quotas; we’re here to help. We have helped hundreds of clients, and we can help you too. Our passion is finding our clients affordable life insurance coverage to protect their families.
Give us a call today, we would love to help! Toll free: 855-247-9555, or request a free quote here.