So, you think you have enough to retire. Congratulations! Many people would like to be in your shoes today. Whats next? The first thing might be to decide whether you want to be retired. It sounds great to have all that freedom, but it can be a big change if working has been a part of your life for decades.
I have heard some people say that they spent the first 6 months doing all the projects that have accumulated over the years. For them, it was like an extended vacation. But after that, many of them werent sure what to do next.Retirement doesnt mean you become inactive. People are healthier for longer and many retirees dont want to sit on the porch and rock. Some look for a new job that offers them more flexible hours, some decide to volunteer, some spend more time on a hobby, and some even go back to school.Retirement can last for many years and provide lots of alternatives to do things your way. Many people find working on their own terms to be a different experience from their job before retirement.Working from home, wherever home may be, is a popular alternative for many people. Working, even part-time, can really help make your money go farther. First, your savings continue to grow because you dont need them to replace your income. Additionally, time spent working is time not spending money on other things. Also, many people enjoy spending time with people in a work environment as long as they can have a 4 day weekend every week!
It is important to keep your money working after retirement. Many people are tempted to put their money into extremely safe investments like bank deposits when they retire. With 20 years in retirement, that is a long time to sit on the sidelines. The money you need for the first 5 years is only a small portion of the total. The rest deserves a second look before putting it all into low return investments.
Planning doesnt stop just because you retire. For most people, retirement will last long enough for the world to change a lot. You still have a lot of things to consider like how to invest, how much money you can spend, whether you can afford to spend money on a big trip, and whether you are covered for long term care or outliving your money. Keep updating your plan to make sure you dont get a nasty surprise later.Featured Blogger Matt Easley is Vice President of Life Products at Allstate Life Insurance Company. His views are his own and do not necessarily represent the positions, strategies, or opinions of Allstate.