Do you have the retirement jitters the closer you get to the big event?
It is normal to start having some retirement jitters when the golden years are approaching, but this does not mean that you should let them stop you from achieving the relaxed and happy retirement you dream of.
However, there are certain things that you should know to do or not do so that you can rest assured and make them more manageable.
We have found that these retirement jitters are not something that will go away completely, especially when you are a bit worried and nervous due to finances.
But knowing and preparing for certain things has helped us a lot.
This is why we have decided to bring you the most important dos, don’ts, and one never that should help you get more comfortable and hopefully get over retirement jitters!
Keep on reading to discover them!
Do you have any retirement jitters? Share them with us in the comments down below!
Do 1: Tune out the noise.
This is probably one of the most important things that you should follow when it comes to being nervous about retirement!
There is no shortage of advice and experts out there who are going to tell you what to do and what not to do.
The media is full of these types of people, who also end up giving conflicting and sometimes erroneous advice as well.
And if you are one of the “lucky” ones, you end up having some of these people in your life who will constantly tell you what you should do and how you should go about retirement.
The closer your golden years are, the more you will be experiencing people telling you when you should start claiming Social Security, what Medicare plan is the best why you have to choose the one they live with, what to invest in, etc.
Ignore them. It is all noise. While people you know may be well-intentioned, there is no one-size-fits-all retirement plan that will work for everyone, so you should not try to copy what someone else did to you.
Your retirement plan may look different, and since it is tailored to your unique situation, everything else you hear is just noise. You can take notes and see if anything can help you, but do not count on these alone!
Do 2: Be in the know about your income and investments.
If you are an investor, you should always make sure your investments are sound and that you can reach your financial goals while also not taking many risks.
Sure, there are no such things as risk-free investments, but a smart investor knows how to clock a bag of investments that could affect their finances.
In retirement, you should make sure that you do not make such mistakes, as recovering from a financial loss is harder.
Calculate your finances, counting all the income sources you have, and then decide how you want to transition your portfolio and how you want to allocate it.
You can always keep some money invested so that you can generate more income, but you do not need to swing big as a retiree.
Do 3: Stay on track with your plan.
One of the best things you can do as a retiree is to stick to your plan. Once you have devised your retirement plan, you should make sure you follow it and do not deviate from it.
You should take into consideration your budget, your retirement goals, and your plans, and if you need help, ask a professional to help you. Going to an advisor is probably a great thing to do.
Even the most sound of retirement plans will be subjected to outside influence, including the economy, inflation, markets, and many other life events!
So while you have one, you need to be aware that things could change, but you should not deviate from it completely.
Getting professional help who can suggest adjustments and with whom you can communicate regularly is the best way to ensure you are on track with your financial plan!
Don’t 1: Ignore the fees!
The first and most important thing that you need to keep in mind of not to do is that you should never be ignorant of fees!
Just like with inflation, no matter how prepared you think you are and how much money you have saved, one event can end up depleting your egg nest pretty fast.
In the case of retirement, your egg nest may end up losing money faster if you end up
Just like inflation, it’s amazing how much the fees tied to certain investments can deplete a nest egg over time. Before you retire, take the time to research these costs, including:
Mutual fund expense ratios. These costs are charged to shareholders to cover a fund’s annual expenses and can sometimes be hard to spot. It’s worth the effort.
According to the SEC: “Even small differences in fees from one fund to another can add up to substantial differences in your investment returns over time.”
Annuity fees. The fees attached to annuity contracts can vary from one company to the next.
But in general, the more complex your contract, the more you can expect to pay in fees.
This is especially true when it comes to optional features, known as riders, which can affect various aspects of the contract (such as a death benefit payout or income payment guarantee).
Knowing these fees can help you assess the true value of your investment.
Advisory fees. Unless you’re working with an adviser who’s a fiduciary, it may be hard to track some of the fees you’re paying and what you’re getting for your money. Don’t hesitate to ask.
While keeping track of fees is important, so is any sort of monthly payment you are committed to. Keeping a budget planner is a good way to keep track of everything and not get overwhelmed. This one from Amazon has been amazing in helping us tackle the retirement jitters related to finances!
Don’t 2: Get too emotional.
No matter how solid your retirement plan is, one thing will sabotage all the good work you have done: emotions.
Retirement is approaching, and negative emotions like greed, retreat, fear, and pride could ruin your plans.
While we all experience a wide range of emotions, it is not good to let them cloud your judgment or make you act outside of the norm.
It is good to feel your emotions, but letting them lead you into a knee-jerk reaction is not the best thing you can do.
The best way is to feel your emotions, remember they are there, and make sure that you do not give in to any negative, sporadic, or knee-jerk reactions they may lead you to, no matter if they are good or bad.
You never know what an impulse reaction based on emotions can lead you to do, and it can end up being a bad choice in the long run.
NEVER! Follow “hot tips”.
The one thing that you should never do is give course and act on any investment “hot tips” that may arise.
Not only is it a very amateur investment mistake, but it is more akin to poker and going in at a bluff than you may think.
You have to think about your losses if this investment on this hot tip, and going all in in the hopes of securing your retirement, is the worst thing you can do.
You may not have the amount you have wished for in your egg nest, but going down the path of a get-rich-quick scheme is bound to drain that account faster than you know.
A famous author once said, “When you want to help people, you tell them the truth. When you want to help yourself, you tell them what they want to hear.” and he couldn’t be more right!
Never listen to hot tips from anyone who gives you this amazing investment idea that will pay you back tenfold in a short amount of time.
Slow and steady wins the race, with sound advice from professionals, so do yourself a favor and do not get excited and follow these tips.
There are a lot of dos and don’ts out there that you need to make sure you are taking in and trying to follow, but there is a way to make sure that you are on the right track. If you want to make sure you’ll have a successful retirement, make sure that you follow the five pillars of retirement!
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