When you picture your retirement, what do you see? Is it a life of travel and new hobbies? More time with family and friends? Or simply the freedom to live life at your own pace? A successful retirement isn’t just about having enough money—it’s about having a plan for the life you want to live.
At Vernon Management Group, we believe that the best retirement plans are built on a clear vision. Here is a simple guide to help you think about what a truly successful and fulfilling retirement looks like for you, right here in Richmond, VA, and beyond.
Step 1: Define Your Purpose The biggest mistake many people make is focusing only on the financial side of retirement. The reality is, your career provides more than just a paycheck; it gives you a sense of purpose and routine. Replacing that is key.
Ask yourself: What new skills do I want to learn? What causes or charities am I passionate about? What volunteer work would bring me joy? How can I stay socially engaged and connected to my community? Whether it’s starting a garden, taking a class at VCU, or volunteering at a local Richmond non-profit, having a purpose will make all the difference.
Step 2: Get Your Financial House in Order Of course, a great retirement also requires a solid financial foundation. A key step is to estimate your retirement budget. Many experts suggest you’ll need around 80% of your pre-retirement income.
Take a good look at your current finances. Pay off high-interest debt, like credit cards, and create a plan for managing your mortgage. As you approach retirement, you may also want to consider making “catch-up” contributions to your retirement accounts if you are age 50 or older to give your savings one last big boost.
Step 3: Craft Your Retirement Income Strategy Once you’ve saved, the next step is figuring out how to turn those savings into a steady income stream. This is where the shift from “saving” to “spending” becomes real.
Consider your sources of income:
- Social Security benefits (and when to start taking them)
- Withdrawals from your 401(k), IRA, and other accounts
- Pensions or other sources of income
A well-designed withdrawal strategy can help your money last longer and reduce your tax burden, ensuring you have the cash flow you need to live the life you envisioned.
Step 4: Plan for the Unexpected A successful retirement plan is one that can handle surprises. Rising healthcare costs and unexpected events can derail even the best-laid plans. This is why it’s so important to have a strategy for managing risk.
Think about:
- Healthcare: What will your out-of-pocket healthcare expenses be?
- Inflation: How will you make sure your money continues to grow and keep up with rising costs?
At Vernon Management Group, we understand that true retirement success is about more than just the numbers. It’s about creating a holistic plan that supports your goals, your lifestyle, and your peace of mind.
Ready to start planning for the life you’ve always dreamed of? Contact us today for a complimentary consultation. Let’s work together to create a plan that helps you achieve a truly successful and fulfilling retirement.
Disclaimer: This content is for informational and educational purposes only and does not constitute financial, legal, or tax advice. The information provided is general in nature and is not intended to be a substitute for professional advice tailored to your specific financial situation. All investing involves risk, including the potential for loss of principal. Past performance is not indicative of future results. Vernon Management Group, a registered investment advisor, provides this information with the understanding that you will consult with a qualified professional before making any financial decisions. We are not responsible for any actions taken based on the information contained in these blog posts. Contact us today for a personalized consultation to discuss your specific financial needs.