Preparing for retirement is an extremely important task, but one that doesn’t receive nearly the attention it deserves. To set yourself up for a happy retirement, you’ll want to do more than figure out how to just “get by.” After all, no one wants to spend their golden years wondering when- or if- their money is going to run out. Put together a game plan now to pave the way for the most comfortable and happy retirement possible.
Are you wondering where to begin? Follow these three key practices to get you started:
Figure out how much you need to save.
You’d be surprised by how many people dramatically underestimate what retirement is really going to cost them. The best place to start is to sit down with a financial planner and discuss what you want your retirement to look like. Only then can you determine the best course of action when it comes to saving your money.
Add to streams of income.
We suggest developing multiple streams of income. These sources of income can be in the form of real estate, investment income, and business income. The happier (and wealthier) retirees use these income streams to bridge any income gaps.
Become an income investor.
One way to create an additional stream of income is through income investing. It's unlikely that your Social Security or 401(k) is going to provide for all the things that you'll want in retirement. It’s important to focus on the production of a steady cash flow from stocks, bonds, and other investments which you can then use as income in your retirement.