From Birch Gold Group
When journalists prepare for a story, they usually research their story by getting the “Who – What – When – Where – Why – How.”
But this method is not limited to just journalists. You can apply the same approach to your retirement planning. Let’s start with the first five:
Who?
Since most people retire towards the end of their lives, it’s critical to think about who you want to spend that time with.
But don’t limit this to just friends and family. This can also include those who help you handle important retirement-focused tasks. You’re considering who can help you make the most of your retirement, whether it’s through intimate or professional relationships.
What?
It’s crucial to think about what you will do with the time you now have on your hands. Over at Forbes, an articlehighlights some things to think about:
Will you work or volunteer? Do you have hobbies or interests that you want to pursue? Will you travel? Or go back to school?
Many people enter retirement without having a good idea of what they want to do with their extra time. This can lead to costs not estimated for before retirement and can leave “big doubts.”
When?
There is a minimum retirement age and a maximum retirement age for retirees who don’t have the financial resources “to retire at 41.”
Deciding when to retire is important. A number of factors play into the decision like health, savings, and how much Social Security you can earn (among other factors). Knowing when you want to retire can help you better plan for expected and unexpected costs.
Where?
Ever dreamed of retiring in Paris? Want (or need) to live close to family? Do you have health concerns that require care?
These are all questions that need to be considered before finalizing where your retirement destination will end up. You don’t want to make a move that will end up needing to be changed with costs you didn’t account for.
Why?
A crucial question to answer some might not consider is why you want to retire. For example, are you retiring because you no longer want to work, or would you want to keep working part-time to earn a side income.
Asking “Why?” is a powerful question when planning for retirement. Most people don’t plan at all, which can end up having unfortunate consequences.
The other question you need to answer affects each of the above questions: how you will pay for retirement.
“How” You Can Save for Your Retirement
Aside from generating side income from working part-time, the common sources of retirement income are Social Security, pensions, and savings. Unfortunately, these resources are not as reliable as they may have been in the past.
Social Security shouldn’t account for the entirety of your retirement income. Most experts agree that it is designed to replace only about 40% of your income earned, on average. But relying on even that comes with risks, as the program is facing a 25% cut by 2035 if nothing is done to restore it.
Pensions have their own risks as well. Public pensions are in jeopardy of becoming a retirement crisis for everyone, with huge shortfalls amounting to trillions of dollars. Corporate pensions aren’t doing much better, with debt piling on and companies having to make decisions that involve killing pension programs.
Even your more basic retirement savings may be at risk due to their exposure to uncertain market and geopolitical tensions.
Despite the risk each of these retirement income sources face, you can minimize that risk by making sure you don’t have all of your eggs in one basket.
Diversification is a strategic way to protect your hard-earned savings. Especially, if you’re considering assets known for their protection. Assets such as physical gold and silver are popular diversification options because of their history of security and growth during uncertain times.
Whatever you do, don’t wait to start asking these questions. Start planning today for a better retirement tomorrow.