21 Sep How to Pay for Your Passion Project After Retirement
As medicine improves and life expectancy increases, the concept of retirement has changed. No longer are senior adults content with resting once they reach retirement age. No, these people who have worked so hard all their lives now want to take the time to enjoy things, to travel, to pursue their passions.
Even in your thirties or forties, you already have ideas, don’t you? You know where you want to go and what passions you want to chase. You may want to sell your home and buy an RV to travel all those places you still haven’t seen. Maybe you want to pursue your clothing design and sewing passions to create your own company—or just keep your grandchildren in trendy fashions. The possibilities are endless, but there are a few sobering facts you need to consider as you prepare for your future.
The median savings in a 401(k) plan for people between the ages of 55 and 64—in other words, that decade before retirement—is only $15,000. Another recent report states that 33% of Baby Boomers have less than $25,000in their overall retirement savings. That’s not enough to live comfortably after retiring, much less to pursue projects and passions that you’ll finally have time for.
You may also have to overcome the hurdle of debt, which amounts to an average of over $36,000for families in which the head of household is over 75. The statistics don’t paint a pretty picture for life after retirement, which is why so many over the age of 65 must enter the workforce again, leaving no time to enjoy life.
Well, as they say, where there’s a will, there’s a way. Let’s find a way to boost your income now so you are ready to hit the ground running when retirement comes.
Identify Your Money Personality
Before you do anything else, you should investigate your own individual attitude toward money. This can open your eyes to a whole new world of possibilities. Are you a ChessMaster, plodding and meticulous but slow to save or invest? Are you a Champ, making risky moves that could win or lose everything in one snap decision? Maybe you’re a Whirlybird, spending everything without thought so that you can live every day like it’s your last.
Knowing your attitude toward money can give you better insight into what you’re already doing right and what you can improve in order to see a change in that bank balance. The sooner you start, the faster you can watch that bank balance grow.
Consider Your Investments
Do you have bonds that are just sitting there, doing nothing? It might be time to cash them out and invest them in something more aggressive for the next few years. You might not want to get rid of your bonds completely, but split your portfolio so you have your safety net available should your other choices not work out. Spend a little time beforehand watching the market and looking for trends to follow over the short run. Then, go ahead and make a little change to pocket a little change.
Step Up Your Savings
Are there areas in your life where you could sacrifice a little in order to save a lot? Maybe you could save $100 every week just by eating two additional meals at home. You may also consider making changes to your vacation plans in order to cut down on the costs. Could you invest in a capsule wardrobe to cut down on the money you must spend on your career clothing?
Pay close attention to the possibilities that are available to you. It’s worth it in the long run to make a few changes today, isn’t it?
See a Financial Advisor
There are a lot of changes you could make on your own, but the best idea for planning for your retirement years is to work closely with a financial advisor. You want to find someone who understands your personality and won’t make you feel uncomfortable with your money choices—someone who can help you find the good in every single money personality so that you can begin to see a big change in your bank account. Most of all, you need a financial advisor who not only wants you to have fun, but who also believes you deserveto have fun, while also making plans for the future.
The Hopman Group can help you make these plans without sacrificing your fun. You can save enough to not only enjoy your retirement, but to also pursue those passion projects you’ve been dreaming about. When you’re ready to get started, we’ll be here.