Your relationship with money
Your relationship with money after retirement helps you maintain a secured life. You need to use all your savings in a planned way after retirement so that you can have a worry-free life. You can have a greater control of your finances by investing or enlisting in a number of retirement plans.
Planning: the key factor
Before planning your finances for retirement, you have to think about your age, health, hobbies, and several other factors. With meticulous planning you can make your savings last longer. So your relationship with money depends upon your planning before your retirement years. Many experts say that a minimum of 70 to 80 percent of pre-retirement income is needed for your retirement use.
You might have excellent savings if you have invested in different investment plans while working. By investing in these plans like mutual funds, 401Ks, stocks and others you can increase your savings in multiple accounts. But with these accounts you might not have a clear picture of your financial status and retirement funds.
The best option for handling your investments is, then, to combine these retirement fund accounts into one. So simplify your monetary assets by combining these several retirement funds into one account. One example is, if you have a 401(k) retirement fund account, you can transfer it to an IRA.
Another way to manage your finances is to manage your income from social security. This is actually the largest income source for most senior citizens in the US and provides a strong base for security after retirement. It is important to decide when to start your social security benefits. If you begin your benefits at 62 years, you are likely to get reduced benefits whereas waiting till your full retirement age from 65 to 67 will accrue the full benefits. You can read more about Social Security in our dedicated section.