How to do good retirement planning?

 A pleasant retirement means having a good income and tranquility to be able to enjoy life, reaping the fruits of what we have sown over a working career. However, the path to achieving this goal is often tortuous due to a lack of retirement planning. A phase that should be rich in experiences can become a cycle of frustration and anxiety.

 In this article, I'm going to talk about the seven fundamental pillars for you to ensure proper retirement planning and have a more peaceful future life.

 1. Contribute to social security

 It is necessary to be aware that social security, whether in its own or general regime, is an important strategy within retirement planning with John Labunski, especially for those who are starting a process of building up financial reserves.

 Not only will the income you will have in retirement be important, but other factors should also be taken into account, such as an income that may be needed in the event of unemployment, maternity, illness or disability.

 Therefore, there are some fundamental elements of social insurance that I consider important to contribute, even if it is the minimum payment.

 2. Have an investment portfolio

 The second pillar, also quite traditional, is to count on investments. The investment portfolio is the traditional construction to complement the insufficient income that the SSA will provide us in the future. In this way, retirement planning will involve a contribution to social security and a complement to this contribution with your personal effort, through investments.

 The assembly of this portfolio must involve good choices. So study your investments very carefully. Sometimes a 1% a year difference in profitability may seem like little in the first year, but over 25 years it's a difference that can double your capital.

3. Assess your lifestyle

 In addition to investments, we must consider a lifestyle change. By moving 60 kilometers from where you currently live, wouldn't it be possible to live with a better quality of life and perhaps a 30% lower cost of living? Even if you are a little away from your children, grandchildren and loved ones, it is something to consider.

 Being rich is not just about those who have more, but mainly about those who need the least. If you need less in the future, you will be more relaxed in terms of using your assets and the pressure to build them.

 It is necessary to understand that life allows adjustments when we realize that we are not destined to live forever where we currently live. You can find situations that provide a much more interesting quality of life, sometimes not too far from where you live.

 4. Have financial benefits with your property

 The strategy of using your home as part of your pension may face some resistance in United State, but in other countries it is already much better considered, even in legal terms.

 Resisting the idea of ​​getting rid of a property can be a big mistake in your planning. It is very common for people to realize that they have built little financial reserve for retirement. Personal problems, health issues, unforeseen circumstances, children's education, in short, some events occurred during life, and the only thing left as an asset is the property.

 Using the previous point mentioned (review your lifestyle), perhaps you can consider selling this property. One option is to buy a much smaller property and convert the sale value into a portfolio of dividends and thus with the income from your portfolio to fund your lifestyle. Or opt for a reverse mortgage plan — when you transfer your property to an institution and receive an amount, either in full or in installments, with the condition that the property will be owned by that institution when you die.

 5. Insurance contracting

 Protection is a fundamental pillar for a good retirement. If we start building our wealth late and realize that we are not in a position to guarantee something for the family in the event of an unforeseen event, perhaps even a step before investing is negotiating a life insurance policy.

 If for some reason you die or become disabled in the next few years, what kind of protection does your family need? That's why it's important to take out life insurance and, contrary to what many people think, you won't increase protection as you increase your income.

 As your wealth grows, you will be better able to maintain your family's standard of living and thus reduce the coverage you need under insurance policies.

 6. Rethink work

 Another important point to highlight is work. We talk about retirement planning to face a situation in which we want to stop working. If you strongly desire to stop working, this may be a sign that you are out of balance.

 You are probably dissatisfied with your career, but you face this sacrifice to provide comfort for your family. As this sacrifice is making you sick, you can't wait to end it when you retire.

 

On the other hand, when retirement comes, you may feel a very uncomfortable feeling. After all, after decades in a work routine, being productive and receiving your recognition, you suddenly find yourself in a vacuum, where you no longer have routines and obligations to fulfill. This feeling tends to lead to a bout of depression or anxiety.

 It would be much more interesting to start preparing a few years in advance for another activity. It may not be as profitable as that career you've developed for years, but it will provide some income and pleasure.

 Remember that when you formally end this career, when you apply for the SSA and start receiving the benefit, you are retired, but not prohibited from generating income.

 7. Get organized

 It won't do any good to have a good investment portfolio, contribute regularly to the SSA, take out good insurance and, suddenly, in a moment of fatality, not being able to communicate with the family to make a decision. It is very common that wrong decisions are made in these situations, deconstructing what was being planned correctly.

 The main reason is the lack of organization. Whether with guidance on which lawyer to talk to, which insurance company to call, which strategy is being discussed with the investment advisor, etc. It is important that all this control is presented to the family in a clear and organized way.

 Live: 7 steps to plan your retirement

 Conclusion

 The idea of ​​saving good money and living off of it is valid. However, I believe it is more interesting to lead a balanced life, take care of your productive capacity, and optimistically adjust your plans to the idea that you will work much longer than most people expect to work.

 Be less in a hurry to retire and more in a hurry to identify what is important to you. Adjust your budget to spend more on what's good for you, simplifying your financial life, maybe even buying a house further away from the city.

 Spend better, get organized, save enough or even less, but qualify yourself to be a better person who will enjoy your professional activity and surprise others with a greater capacity for delivery.