As the years start rolling about faster and faster, boomers, who are now on the brink of retirement, start to wonder how they will retire and what they will do in their retirement. The truth is, there are no rules to this and each person decides what to do with their retirement time, money and plans. However, experts have panned out a retirement plan to make it truly golden and profitable. You may call them guidelines, rules, commandments, or whatever pleases you. But these rules have helped millions of soon-to-be-retirees understand what the golden years have in store for them.
Save, save and save some more
The first rule to retirement is saving money for it. Putting money into your 401(k) and IRA retirement funds is a great way to ensure you will have money to do what you please in your retirement. In fact, many people even put their IRA retirement funds to work prior to retirement by investing in vacation rental homes overseas. Any income generated from that property is put back into your IRA account, helping you create a steady flow of income that will come in very handy in your retirement. In the meantime, you can also create automatic deductions from your paycheck and join investment plans, which help put away money before you are able to spend it. Many retirees often just rely on their Social Security, which is a safety net, to say the least. It does not guarantee that you will be able to afford any sort of comfortable lifestyle. So, if you save – and invest – your money wisely, you’re ahead of the game.
Move away and find an affordable retirement spot
The reason why thousands of Americans and Canadians move to Mexico for their retirement is cost of living. Don’t be afraid to get up and move elsewhere. In Playa del Carmen, you can comfortably live for 50% less of the cost than you would in Sarasota, FL or Scottsdale, AZ, for example. And you might even be able to purchase a home for a fraction of the cost it would cost you back home. Mexico is the perfect spot for retirement due to its proximity to the US for quick visits back home, and it is the most culturally familiar country for those in the United States and Canada. So, get ready for that adventure abroad that retirement often promises.
Wait the correct amount to retire
You might hear of early retirement cases that are a huge success. A young man of 53 and his similarly-aged wife investing abroad and getting ready to retire after years of work. But this is not the case for everyone. Retirement should come at the right time for you. Early retirement is good when you have a fortune saved up and are certain that you have enough to live comfortably for the rest of your life. However, you need to measure your individual case. It’s quite simple. You need to give your money time to accumulate and multiply. Your Social Security checks will become smaller if your retirement is longer. So, make sure you give yourself time to fully prepare for retirement.
Think of no one but yourself
Downsizing is often a scary thought for people. But the reality is that you no longer need to shelter a whole family – just you and your partner. Think of yourself first, and everyone else second. Sure, you might want a guest bedroom in your Mexico home for whenever your grown children and grandchildren visit. Or if you have friends who are enjoying their retirement by traveling and want to stay with you. But there is no need to look for a 4-bedroom home with a studio, a TV room, a laundry room and all the big, lavish spaces you enjoy as a family. Retirement often means going back to basic. And that means you should think of your savings and your needs. Get rid of that mini van and switch out for a small car, or no car at all!
Plan to stay active, motivated and busy
Retirees often find themselves bored, not knowing where to go and what to do. If you’re used to a busy lifestyle, where you work 9 to 5, go out for business meetings or are often traveling, make sure to keep a fast-paced retirement. Except this time, there are no responsibilities, commitments or people depending on you. Staying healthy, active and busy during retirement is great for both your physical and mental health. So, make sure you plan your retirement with enough motivating activities. You might want to move abroad and spend your time traveling to nearby places. You might want to travel the world. Maybe your retirement doesn’t really necessarily mean you’ll stop working altogether. Maybe you open up a shop you’ve always dreamed of or join a club. The point is to keep yourself going and don’t let yourself disappear into your couch in front of the TV.
Make new friends and try new things
Retirement is a treat. It’s a reward earned from years of studying, working, caring, learning, stumbling and starting over again. So, don’t be afraid to do all those things you couldn’t when your focus was elsewhere. Travel, learn new languages, make new friends. Thousands of Americans and Canadians relocate to Mexico for their retirement and enjoy living a simple, laid back life surrounded by friends they never thought they’d have. Enjoy your retirement. You’ve earned it!
And if you’re keen on making that retirement money work for you, don’t hesitate to invest in real estate in the Riviera Maya!