Business & Finance

How to Plan Your Retirement Finances

When your retirement is around the corner, it’s an exciting time to start planning all of the fun things you can do now that you have free time.  You may be able to take the trips you’ve dreamed of taking, spend more time on the activities you enjoy, spend time with family and friends, and plan for your family’s financial future.  However, if you want to optimize the rewards or your nest egg, it is wise to plan accordingly.  Here is the definitive guide to planning your retirement finances.

Decide How You Want to Receive Your Retirement Funds

You may have an idea of what you want for the immediate future, and all of those years of hard work are worth the payoff.  However, it is wise to plan for the unforeseen.  Consult a professional financial advisor who can help you plan your finances based on your needs and wants.  He or she will first advise you to choose a method of payment, as described below.

  • Lump-Sum Payments. If you acquired less than $5,000, you can choose to cash out.If you have saved more than this amount and want to receive a lump sum, you will first need written consent.
  • Installment Payments. This option will pay you at regular intervals for a period of time until you run out.  You may choose a certain amount you want per month until your funds run out.
  • Annuity Payments. Get paid a certain amount every year.  Depending on the type of annuity, you may be under contract to get paid for many years.
  • Spousal Annuity. Your spouse may qualify under a plan called Qualified Joint and Survivor Annuity. This will pay the spouse a life annuity, which will support him or her in the event you pass before payment ends.

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Plan Your Big Expenses.

A financial advisor is equipped to help you optimize your funds.  This means planning any large expenditures ahead of time—don’t just plan out your big trips.  In addition, you should consider your monthly budget and yearly goals so that you get a better idea of how you can become more money-wise.

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Don’t Forget About Social Security Just Yet. 

Retirees may be living longer, but the integrity of social security still stands.  Many people speculate as to whether social security will hold up in the years to come, but as of now, you can benefit on the social security you have. There’s a lot of debate as to whether Social Security will withstand the years to come.  Be sure to check up on your current benefits online, and look at your different payment options.

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Plan Your Will.

It’s not comfortable for most, but will planning early on is your best chance to keep your finances, property, and other belongings orderly so as to not complicate your family relations after you pass. Another way to help your loved ones financially after you pass is to invest in burial insurance.  Insurance from a company like can help you and your family keep your desired service while maintaining your family’s financial stability.

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Make More Money off Your Money. 

There is no better way to maximize the money you have by investing some of it into stocks or real estate.  Both avenues have their benefits, and investments are a great way to fund any future plans for yourself or for your family.  If you want to leave a bundle of cash behind without completely losing your funds in the meantime, investment is the way to go.

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Consider Working Part Time.

Retiring no longer means being resigned to golf courses or watching the midday news for the rest of your days.  Instead, now is a great time to pick up the job you always wanted.  Perhaps you love gardening and want to work at a plant nursery.  Or perhaps you have always wanted to volunteer for a cause like GenerateHope.  On the other hand, now is the perfect opportunity to create your small artisan honey business or perfect your own brand of wine.  There are many opportunities to find fulfillment outside of a full-time job, and now you are your own boss.

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Retirement should be an exciting time to seek new ventures.  Prepare yourself for the path that you want to take by planning your retirement ahead of time.

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