One of my recent radio shows discussed the “Seven Habits of Highly Effective Retirees”. I’ve narrowed these down to the basic traits and strategies that all successful retirement savers and investors share. Over the course of my next two blog posts, I’ll be sharing exactly what those seven habits are, and why they are important.
Maxing it out. Highly competent retirees make the most of their retirement savings plans available to them through their job or other program. Instead of ignoring the details of their plan, like far too many participants do, they maximize their contributions and take full advantage of match programs and other opportunities.
Boosting contributions. Savvy savers and investors increase contributions to their savings plan(s) as much as possible. After they pay off a loan or discharge a debt obligation, for example, they put that money back into a retirement account instead of increasing their spending. Highly competent retirees do not let up—they are always looking for opportunities to invest more and leverage their savings.
Estimate your retirement income. When it comes to figuring out what your monthly and annual spending needs will be once you retire, do not guess! Highly competent retirees begin with online tools and work with an advisor to determine what they and their family will need to live comfortably. It’s simply too important of a factor to just “wing it” or take your best guess.
Review your strategy. Competent retirees review their savings and investment strategies regularly—always looking to see if they’re on track, and thinking about how and where they can make small adjustments to their spending, budget, investment or plan structure to optimize their position.
Stay tuned for 5-7 next week!