Retiring soon? Here are some things you should consider!
If you are like many older adults during the past year, you may have decided to undergo an early retirement. According to an article from Bloomberg, more than three million people over the age of 55 thought about retiring early last year. This has a lot to do with the fact that the pandemic caused unprecedented job losses. In addition, seasoned professionals have also thought about prioritizing their physical and mental well-being through retirement.
Regardless of your reason for retiring early, you may not have a complete plan for the long term. Then again, that doesn’t mean you can’t make the most of the years that lie ahead of you. Keep these five tips in mind as you hang up your boots and start living on your terms.
Develop Bankable Skills
Entering retirement doesn’t necessarily mean you can’t acquire new skills. You have all the time in your hands to develop new ones that can help you earn a living on the side. If you are not used to being idle all the time, consider getting new skills in web design, illustration, or even starting an urban garden. There are tons of lucrative opportunities for you to take, so spend time upskilling and using your newfound knowledge to fuel your retirement spending.
Do you want to pay less in home utilities? Has your current home gained massive equity over the years? Today’s retirees are in the best position to move into smaller homes, rent out condos or townhouses, or invest in a beach house. Right now would be the best time to sell your current property and use the extra money to live somewhere that’s cozier and cheaper. When selling your house, look for a realtor who can help set a good asking price and make the property stand out in today’s real estate market.
Grow your Savings
The downside to retiring early is the fact that you may not have saved enough to fuel your retirement. Sure, you have complete control over the amount you have saved during the span of your career, but will that be enough to accomplish your retirement goals? Instead of splurging all your cash on travels, you might want to set aside a good amount for an investment that generates passive income. Apart from stocks, you can use your IRA plans towards cryptocurrencies and real estate investment trusts. With all the cash you have, you should put it to work.
Stay within your Goals
Early retirement isn’t a trend that you want to follow. It’s a decision that needs careful consideration since there’s greater uncertainty that lies ahead. The least you can do is to make decisions out of gut feeling. You wouldn’t know what lies ahead during retirement, so make sure to set specific goals and commit to them. Don’t let certain fads cause you to spend above your means. Securing your future matters just as much as enjoying this phase of your life.
If you have retired early, it’s important to maximize your time and resources to fuel your goals. Use the tips above and make retiring early the best decision you have made!