The ColoHealth Health Wealth Newsletter
July 2019
Vol. 9, Issue 7

6 Easy Steps to Plan for Retirement Early

Planning for retirement doesn’t have to be this big, looming shadow of doom. It doesn’t have to be scary or overly complicated. Let’s discuss some easy steps you can take now to better prepare yourself and be confident going into retirement when the time comes.

1. Create a retirement budget.
Gather your current savings, your debt, and how much money you’ll have coming in during retirement. It’s estimated that you’ll need at least 80% of your income pre-retirement, though that does mean you might have to cut some expenses.

If you’re planning to travel or focus on hobbies you never had time to before, those things should be considered. Remember that your money will have to last you decades potentially.

2. Manage your debts.
Debt is dead weight that will only drag you down; your money may not last as long as a result. You don’t need that kind of extra strain.

The average family between ages 55 and 64 will spend 31% of their income on paying credit cards and other debt. Rein in your spending if credit cards are the poison of choice. Consolidate some of your debt if possible; make an actionable plan, and most importantly, stick to it.

3. Prepare for the unexpected.
Of course, few of us expect the worst going into retirement, but the worst can happen. A tree might fall on your house and destroy your roof, eating up a chunk of your money for repairs.

Your car might finally stop working and you might have to buy a new one. A sudden illness might sweep you off your feet. Plan for the unexpected, so you’re not left struggling to get by financially.

4. Beef up your savings.
The earlier you start saving, the better off you’ll be in the future. Start early, and be smart about it. If you have trouble with excess spending, automate your savings, and make it a priority like your rent or house payment. If your company offers a 401(k), consider taking advantage of it. Invest your money in strategic ways, like the stock market.

5. Find ways to cut expenses.
Sit down and analyze where and what your money goes to. Are there any expenses that aren’t necessary or could easily be cut?

For example, old subscriptions you don’t want or need anymore. Consider downsizing your home or moving to an area with a lower cost of living when you near retirement. Maybe sell the vehicles you don’t use anymore.

6. Get on top of your health now.
If you’re 30 or you’re 60, take a step back and be real about your health. Are you exercising enough? Are you eating a balanced diet? Are you getting enough sleep?

How you treat your body now has a direct impact on later years. Nearly 70% of Americans 65 and longer will need some kind of long-term care in their life. Some of that might be preventable by simply being more health conscious in your younger years.

Retire to your golden years.

There’s no such thing as planning too early for retirement. It’s better to be prepared at an early stage rather than scrambling at the end and failing to achieve financial security.

If you need tips or advice in following your steps, you can reach out to our Retirement Income and Estate Planning Expert Kevin Conroy, and he’ll happily guide you through the process and provide useful information. Simply schedule a free appointment here.

You can also read through our Financial Protection Program special report, which is a simple six-step program to ensure your financial security and peace of mind. Download a free copy here.

To your health and wealth,

Wiley P. Long, III
President – Colohealth

The Colohealth Health & Wealth Newsletter is published monthly and emailed to subscribers at no charge. Subscribe now to stay on top of the critical information you need to know about health insurance, healthshare plans and managing your finances to achieve financial security.