Financing Your Bucket List

bucket-list-financingHow to Achieve Success in Financing Your Bucket List and Saving for Retirement

It is now possible to achieve a high level of success in both saving for retirement and bucket list planning, according to financial experts. It is a known fact that most of us could create a massive list of experiences and adventures that we would like to take part in before we “kick the bucket”, so to speak. The idea of creating a list of these experiences and adventures gained an immense amount of popularity with the release of the popular movie, “The Bucket List” in the year of 2007. In this comedy-drama, two men were able to successfully take part in the experiences and adventures that most “normal” people only ever dream of experiencing. This is because the character played by the ever-popular Jack Nicholson was financially rich enough to not only live through the experiences that he desired, but, was able to fund the wishes of the character that Morgan Freeman had, too. While these two movie characters engaged in numerous extravagant adventures and experiences, it has now been determined that such adventures do not have to cost a fortune. In fact, the average person has the ability to engage in both saving for retirement and funding the activities as part of their bucket list planning.

The True Meaning of Financial Life Planning

Money is an element that is not only essential, but, a highly obvious component, when it comes to financial planning. This is especially true when it comes to saving for retirement and bucket list planning. However, it is important to understand that money should not be the only component that you place your focus on; if you engage in this type of shallow focus, you will quickly discover that you stand the risk of living a life that is also shallow. Financial life planning involves integrating experiences and adventures into any financial-based plans that you have in life. It involves learning how to live the highest-quality and most enjoyable life possible, with the resources that you have available to you. This is the true meaning of financial life planning.

Saving for Retirement and Bucket List Planning

One of the biggest mistakes that individuals make when it comes to saving for retirement and bucket list planning is treating these two milestones as an “end point”, instead of a “starting point”. Retirement is not the “end”; it is simply a transition in life, from one point to another. First, you must get this concept into your mind. You are not nearing the end of life; instead, you are simply transitioning into your golden years. In order to make this transition smooth and enjoyable, you should ensure that you have the proper amount of money saved so that you can live comfortably and enjoy all of those experiences and adventures on your bucket list. To succeed in these endeavors, simply take the following steps:

  • The first step to saving for retirement and bucket list planning is to ensure that you have a vision that is realistic and achievable. In order to experience a truly successful retirement, you must ensure that you are retiring TO some other type of experience in life, not FROM something, like a job that you despise. You must have a vision of what you want to do and where you want to go when you enter into your golden years. You should understand that, when you retire, you may still engage in activities that you enjoy and pursue your passion. Yes, many of your activities will come with a monetary cost; however, many will not. In some instances, you may even find that your retirement activities MAKE you money. For example, perhaps, you will spend your golden years writing that book that you always wanted and will self-publish to discover that it is a success! Vision. It is imperative when it comes to saving for retirement and bucket list planning.
  • The next step to saving for retirement and bucket list planning is to properly balance your time account. That is, the 168 hours a week that we are each granted. Many individuals make the mistake of going from excessively working to excessively vacationing when it comes to retirement. You should strive for balance between your vocation time and your vacation time. It does not matter how much money is present in your bank account, if you fail to completely capitalize on the time that you have, you will not experience the happiness that you desire from the adventures and experiences on your bucket list for retirement. The 168 hours that you have available each week should be broken down into time with family and friends, time dedicated to your work, your health and fitness level, your personal growth, sleeping, and your down time – which includes watching television, engaging on social media websites, and bucket list adventures and experiences.
  • The next step to successfully saving for retirement and bucket list planning is to see your paycheck as a “playcheck”. While working to save money for transitions, adventures, and experiences in your life, it is imperative that you enjoy what it is that you are doing. If you are not enjoying your work, it may be time to change careers. Engage in pursuits that are meaningful and enjoyable. Pursue your passion. Transform a hobby into a business that will allow you to generate profits, or, use your knowledge to become a consultant in a field you are well-versed. Not only will you add more meaning to your life, you will add more money to your retirement account and your bucket list account. Work will no longer seem like work. Instead, it will become fun and enjoyable!

Conclusion

Saving for retirement and bucket list planning are two very exciting activities. By following the steps outlined in this financial life planning guide, you are sure to find that you have the money and the time to achieve a high level of success in both endeavors. Retirement is a transitional period, not an end of life milestone – as so many have seen it through the years. Retirement is not just an economic-based event. It is a personal event that is meant to be enjoyed. While financial preparation is part of preparing for this transition, it is not the only aspect of preparation. By creating a life balance, capitalizing your time, recognizing your passion, and understanding what you enjoy – as a person – you will discover how much money will be needed when saving for retirement and bucket list planning.

Saving for Retirement – 5 Steps to Success

Saving for Retirement – 5 Steps to Success

Retirement should be an important concept to each of us. As soon as possible, we should all be focusing our efforts on saving for retirement. According to the Department of Labor, most individuals spend at least two decades in the retirement phase of their lives. By focusing on a money saving tip here and there, you are sure to achieve success in putting back a little cash for what promises to be some of the best years of your life. Financial security during our retirement years is not something that naturally occurs on its own. You must have a plan and stay committed to the task at hand. In this guide, you will learn 5 simple steps that will make saving for retirement successful.

Start Saving as Early in Life as Possible

One of the best and most productive means of saving for retirement is to ensure that you start doing so as early in life as possible. This is, perhaps, the best money saving tip for individuals that have a desire for future financial security. Saving is a very rewarding habit. Simply start small in your younger years and increase the amount that you save as you grow older. This will allow your investments longer periods of time to grow. Your retirement investments should be a top priority. Simply come up with a plan, set goals, and be persistent in sticking to your plan and achieving your goals. There is power is passing time, especially when it comes to compounding interest!

Max Out That IRA

As of 2014, the maximum amount that you may contribute to an IRA account is $5,500.00, annually. If you are over the age of 50, this amount goes up to $6,500.00. To successfully max out an IRA account as an individual under the age of 50, you would need to place $458.00 a month in the account. If you are over the age of 50, you would need to contribute $542.00 a month into the account. These contributions may be made right up until it is time for you to file your taxes. In making contributions until this time period, you will find that you are able to save money right away on your taxes.

Opt for Your Employer’s Retirement Savings Plan

You should be certain to sign up for any type of retirement savings plan offered by your employer. An example of this type of plan is the ever-popular 401(k) plan. Once you have completed the sign up process, you should then immediately start making as many contributions as possible. You will find that the amount that your employer contributes increases and the amount that you pay in taxes are lowered. As time progresses, you will find that the tax deferrals that you receive and the compound interest associated with the contributions on the account will enhance the amount that you are able to save to put towards your retirement. This is a very popular money saving tip for people that are saving for retirement.

Appropriately Manage Your Risks

When planning for retirement and engaging in the task of saving for retirement, it is important to ensure that you appropriately manage any and all risks associated with the endeavor. You should ensure, as you age, that your exposure to certain types of risks decreases because recovery is harder as you get closer to retirement age. Common examples of risks that should be avoided as you save for retirement include, but are not at all limited to, longevity risk, inflation risk, excess withdrawal risk, health expense risk, long-term care risk, frailty risk, market risk, interest rate risk, liquidity risk, sequence of returns risk, and forced retirement risk.

Keep Your Portfolio Balanced

When planning for retirement and handling a wide array of investments that will assist in saving for retirement, it is important to ensure that you keep your portfolio balanced as your investments experience shifts. The ultimate goal is to ensure that you always have the money that you need for retirement on hand. If you find that your portfolio is not allowing this to occur, you should focus on making the necessary changes.

Conclusion

Retirement is a phase of life that is to be enjoyed and cherished. You have your entire life to prepare for this phase. There will come a time in your life when you choose or must withdraw from your career or your working life, in general. The goal is to create income sources that do not have to be earned through the process of working. It is a time of life when you are considered to be financially independent. By following the money saving tip list in this guide, you will find that you accumulate the savings, the investment income, and/or the necessary pension income that is required to cover your living expenses and enjoy yourself during your retirement. A few simple steps in saving for retirement today could bring many enjoyable tomorrows for you and your loved ones!

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