Words of Wisdom
The best words of wisdom for retirement come from those who have experienced it. Here is some great wisdom that you can benefit from.
"Planning Makes Retirement Work"
... Dr. David Demko
Wikipedia says that wisdom is the coordination of knowledge and experience.
"To Know How to Use Knowledge is to have Wisdom"
... Charles H. Spurgeon
A book entitled "Who Said You Need Millions? Retirement Strategies for the Rest of Us" offers great words of wisdom for retirement from the author Jonathan D. Edelfelt. He and his wife took a test-drive of retirement and gained a lot of good insight for real retirement. I would recommend getting this book.
Most retirees don't have millions and are not worried about money and are perfectly happy. If you assume the average salary is $40,000 per year, it would take 21 years just to earn (not save) one million dollars.
After paying for your normal living expenses and taxes, there is much less than a million dollars available to save for retirement.
"We make a living by what we get,but we make a life by what we give"... Winston Churchill
Retirement can't be bought on credit, therefore, you need to do your retirement lifestyle planning to fit within your means.
You need to be financially independent to retire, which simply means that your passive income needs to support your lifestyle. Financial independence is not wealth.
You will need to understand your complete list of sources of retirement income - savings, social security benefits, pensions, etc.
Then you will need to plan your retirement lifestyle to spend less than your income each month.
Some things to consider that are fairly easy to do - cook at home instead of eating out (at least most of the time), use the library instead of buying books, don't buy things using credit cards if you won't be able to pay the card off each month, etc.
If you are considering moving to another state, be sure to understand the difference in total taxes that you will need to pay - real estate taxes, personal property taxes, sales taxes, and income taxes.
Remember that although your general living expenses tend to go down as you age, two expenses will probably go up - your leisure expenses and your health care.
One thing you should look into is Long Term Care insurance. If that is something you anticipate needing, the sooner you get it, the cheaper it will be. It is also best to get it before you have a pre-existing condition that might prevent you from getting it.
Words of wisdom from many experts are to retire debt-free. In today's world that may not always be possible, especially if your employer does the choosing of the date you will retire, as it did in my case.
"If you don't have a life outside of work, retirement can become very lonely, even depressing"... unknown
Some people feel anxious to retire and get out of the rat race. However, just taking a break from work, perhaps an extended vacation, helps you to recover from burnout. While I was working, I often questioned how some of my co-workers from outside the US could take a five week or two month vacation from work every year. It actually helped to rev up their engines again.
Some words of wisdom for retirement from me would be to take a deeper look at this website and check out the other topics I discuss here. I am continually adding more information so come back often. You can also subscribe to an RSS feed to be aware of any changes I make to this site - see the link on the menu bar on the left of this page.
"Retirement may be an ending, a closing,but it is also a new beginning."... Catherine Pulsifer
Return from words of wisdom to planning for retirement.