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5 Steps to a Pleasant Retirement

By JLP | August 31, 2006

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.

Topics: Budgeting, Retirement Planning | 5 Comments »


5 Responses to “5 Steps to a Pleasant Retirement”

  1. Billy in Texas Says:
    August 31st, 2006 at 2:01 pm

    Scott Burns is a no frills right on target writer for the Dallas Morning News. His columns are always a first read in the morning. This is the first time I have seen his name on any of the numerous finanical websites I visit each day. He is well known for his couch potato portfollio and several years ago he questioned Peter Lynch’s (from Fidelity Magellan fame)recommendation of a 7% withdrawl rate from a retirement nest egg in an article published in Worth magazine. I believe the magazine allowed Mr. Burns to write a correction the original article. Thanks for your excellent site.

  2. Jess Says:
    September 1st, 2006 at 4:05 am

    The idea is very good. I think I follow these useful advices.

  3. » Weekly Blog Round-Up on Consumerism Commentary: A Personal Finance Blog Says:
    September 1st, 2006 at 9:11 am

    […] Mighty Bargain Hunter writes that the new rules for writing off charitable donations won’t affect him. Blueprint for Financial Prosperity warns that cashflow-negative real estate investors are in trouble. AllFinancialMatters offers 5 steps to a pleasant retirement. […]

  4. fivecentnickel.com Says:
    September 1st, 2006 at 12:45 pm

    Weekly Roundup – 09/01/06

    Jim talks about which closing costs are negotiable. Definitely worth the read if you’re in the market for mortgage. The only thing that Jim doesn’t provide in his writeup is the backbone necessary to stand up to the lender and make them low…

  5. Chris Says:
    September 2nd, 2006 at 12:26 pm

    it’s all a matter of expectation and demand.

    ;-)

    Cheers,
    Chris

    http://nomads-vagabonds.blogspot.com/

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