Now what? It might amaze you to discover that the work is not over just because you have retired. In fact, retirees have to account for a much longer life expectancy. If you did not plan for that, you might be left without adequate funds. Now is not the time to not stop investing, even if you feel you have saved enough to cover your retirement. You want to allow your money to continue to grow and cover all 25 to 30 years of your retirement. Likewise, do not get too conservative with your investments. Eighty percent in bonds, when you have reached retirement, will not keep up with the inflation rate. A good mix today of your investments in retirement is 50 percent in bonds and 50 percent in stocks. This approach will maintain growth and ensure proper coverage over time.
Above all else, do not overspend your retirement dollars. With more free time for shopping, travel, and entertainment, careful budgeting is critical. By continuing to work with a professional financial planner, you can take vacations and even splurge on expensive items as long as they are within your budget. Glance over the following infographic and check out this reverse mortgage calculator to help you understand why you should keep your money working for you throughout your retirement.
Infographic by: onereversemortgage