Only 5 Years to Retirement? Take These Steps

Only 5 Years to Retirement? Take These Steps

You will feel stressed at any event if you face it unprepared. The same is true for retirement too! When you go ahead and become retired one day without any preparation things will seem tough. The best way to avoid that is prepare beforehand. If you are thinking that still there is 5 years to get retired then be ready, your retirement is not far away. 5 years will pass fast and you will get retired. Thus, start planning now.

Here are few short term retirement planning

Increase Cash Reserves

You may get somewithdrawals from Social security and retirement pension plans, but they willtake their time. If things get delayed the first pension check may take sometime to reach you. Thus, plan for such situation and make a cash reserve in anysafe cash investment plans. You can invest in savings accounts, money marketsaccounts or anywhere from where it will be easy to get the cash when you needthem. You can tuck away some amount that will be enough for six to eight monthsliving expenses.

Estimate how much money you need to retire

You are not sure that howmuch will be enough to retire? You can do that by calculating the actualexpenses that will be there after your retirement plus add some more for suddencontingencies. You may think the whole thing to be boring but actually it isgoing to help you after you retire.  You can start by writing and summing up your current expenses including the expensive ones like home improvements, repairing of vehicles and of course health costs. Then calculate how much can you earn from the monthly pension. Is this amount enough to meet the expenses? If yes, then no issues if not then you must save more now or make a fresh budget for retired life.

Diversify Your Investments

Your portfolio will tella lot about you and in order to have enough money after retirement you need towork on your portfolio. It is always best to start diversifying your portfoliobecause you never know what’s going to go up and what’s going to go down. Youneed to figure out what mix of investment will give you the desired return. Ifyou cannot do that yourself you can take help from any financial advisor.  When you approach retirement you have to be very careful. Planning ahead will let you enjoy your retired life without any worries.