Scott Burns of the Dallas Morning News has written an article titled 5 Steps to a Pleasant Retirement that I thought was worth sharing. His five steps along with my commentary:
Eliminate Debt – Naturally, the less debt you have in retirement, the more secure you will feel. It isn’t prudent to take on a lot of debt during retirement due to the uncertainty of knowing how much things like healthcare will cost.
Know What You’re Spending – Budgeting during retirement is VERY IMPORTANT. Knowing what you are spending is important so that you don’t spend too much and you don’t allocate too much or too little to your income needs.
Put Your Possessions in Good Condition – You don’t want any unexpected expenses to creep up. Therefore, it makes sense to have all your possessions in good working order BEFORE you retire.
Do the Same With Yourself – Healthcare is most likely going to be a HUGE expense to a lot of retirees. It makes sense to do what you can to stay healthy. It makes perfectly good sense to get a physical while you are still employeed so that if there are problems your health insurance can take care of it.
Make Sure Your Income Exceeds Your Outgo – This has to do with budgeting. It is important to put the brakes on any spending that will put you into the red. Retirees face the situation in which principal, once it is spent, is VERY DIFFICULT to get back.
I suggest you read Scott’s article as he has mentioned things that I have not addressed. I also welcome any comments about retirement planning.