At some point in life, it is mandatory to start thinking about your retirement plans and begin financial planning. This is especially true for government employees, who receive a retirement fund and have to come up with a plan regarding how they want to spend it. That being said, this isn’t as easy as it sounds and most people don’t know where to begin.
Start with You: You first need to look at yourself critically and determine whether or not you’re emotionally and financially ready to retire. You might begin to panic, but fear not, everyone does. It’s not easy to accept change. Starting early is always the best way to ensure that you don’t panic when the time comes. Discuss your financial plans thoroughly with your family members, as that will help put a lot of things in perspective.
Personalize Your Plan: A safe, sweet spot to start off with is evaluating all the investments that you have made, which includes mutual fund accounts, savings and banking accounts, brokerage, assets, and TSP. Once your plan has been personalized, you would be able to see exactly how much you can afford to spend both pre and post your retirement, which will make things a lot easier to navigate through for both you and your family.
Get Your Accounting in Order: Once you have mentally prepared yourself, it is now time to look at all your pay statements, receipts, loans, bank account information and try and see just how much you would have left over once you have paid all your bills after your retirement. Of course, that would just be an approximate amount, but that still goes a long way in terms of financial planning. Using a retirement cost analysis sheet on MS Excel would simplify things further.
There’s Nothing with Asking for Help: If you or your spouse aren’t very knowledgeable about financial matters, you could always opt to hire a financial adviser. However, many aren’t comfortable with that, since hiring an adviser would mean giving them personal information some rather not disclose. That said, you should always think carefully about what would suit you best as a person, since everyone’s financial conditions are different. If you do think a financial adviser would be able to sort through your mess, then maybe you should hire one!