Salaried people are often seen worrying about their retired life as that is when they cease to have a monthly source of income. However, if they start planning well in advance, they will never have to deal with the tensions of no or low income during their retired life. So here is a quick guideline to help you plan well so that you can continue to earn even when you are retired from service.
- Maintain an expense log: The first thing that you must do in order to plan your finances well is maintain a detailed log. In this log you must mention every little detail of the expenses and the savings. This log book will help you get a true picture of your finances when you start working around the investment plan.
The best way to make this log book would be making it in the form of a calendar so that you can enlist day wise expenses.
- Practically assess the sources of income that you can bank on after retirement: Monthly or quarterly pays that you will get from your social security should be factored in here. You can also include the benefits that your spouse may be entitled to.
The income that comes your way from the annuity can also be included here.
If you are a divorcee, the alimony you may be entitled to can also be counted here.
In case you have more than one property which is on lease, the rent you get from the same can also be counted as a source of income that you will continue to get even after retirement.
- Check your income potential: If you are in consultancy services you can always continue to work even after the retirement age. You may also want to work part time at this age. This income source should also be taken into account when planning your finances for the retired life.
While most financial advisors stress on the savings when making a retirement plan, Heather Weber who is a certified financial advisor and specializes in retirement planning suggests that along with taking a stock of the savings, people must also take the expenditure into account. The expense log must also involve the taxes and other liabilities that people have to take care of even after retirement.
Heather Weber who has received several certifications in the domain of financial planning also suggests that retired people need to carefully asses the gap between the income and the expenditure. This will further help them in evaluating how much do they really need to withdraw from their savings every month. This will also give people an idea about the surplus income they may have to be deposited in the savings account.
Therefore, it can well be stated that for people to have a safe and secured retired life that is free of monetary tensions careful planning is essential. People who cannot really manage this domain on their own must take the help of certified financial advisors like Ms. Weber.