How to Make a Successful Transition to Retirement Despite the Economy

With the uncertainty of the economy and the devaluation of 401k retirement accounts as a result of the declining stock market, its important to know how to make a successful transition to retirement. You're going to learn how to make a successful transition to retirement despite the economy.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Know when to retire
• Discuss with HR staff
• Set retirement goals
• Monitor investments
• Enroll in a medical plan
• Consider part-time job
• Have a lot of fun

1. 
    
   Timing is critical to the retirement process

   I was fortunate to retire in my early 40s from the United States Air Force over six years ago and thankfully, I was able to attend transition workshops to prepare me for retirement. If the company you work for provide transition workshops, I recommend you attend them. The difference between now and six years ago is the state of the American economy. Your retirement plans must be thoroughly vetted as a result of the financial crisis but it can be done.

2. 
    
   At a minimum evaulate your assets two years before retirement

   No matter when you're planning to retire, schedule a meeting with the human resource (HR) manager at the company you work for. Assess your retirement plan at least two years in advance and ensure its accurate. Also meet with your financial planner, banker, investment manager and accountant to chart a course for your retirement years. Now more than ever, its important to meet with your financial team because of the recent financial meltdown and the reality your portfolio has changed because the stock market is being devalued and retirement plans have taken a big hit.

3. 
    
   New beginnings mean new experiences, go for it

   Just as you set goals while working you should also establish retirement goals. Do you plan on traveling and if so, where to? Will you volunteer to help organizations in your community? Will you write a book, work with at-risk youth or join a board? From experience I can truly say, retirement is more of a life transition and represents a new beginning.

4. 
    
   Take care of your temple

   If you were given a choice between receiving a million dollars and good health, choose good health. Why? If your health is bad, you'll spend all of your money on medical expenses to get well. As a part of your transition ensure you schedule a meeting with your doctor, dentist, optometrist and or medical specialist. Plan an exercise program that will keep you fit. Schedule a meeting with a dietician and strive to live a healthy lifestyle.

5. 
    
   Relationships play a key role in longevity

   A recent study of octagenarians reflect,if senior citizens stay active, have friends, interact with and get involved in their community, they will extend their life. Human beings s were born to be active and interact with one another throughout life. If you drink, do so moderately, avoid smoking at all cost because you'll pay a heavy price if you contract cancer. Octagenerians also either stay married or remarry if their spouse passes away, having someone in your life is very important because it creates purpose.

6. 
    
   Family members will play a role in your retirement transition

   You also have to make sure you know where you want to live. If you decide to remain in the town, city or state where you worked, this means you're retiring in place. If your children are grown, married and have children, you may want to downsize your house to cut down on maintenance and opt for a house without stairs. Cutting down on yard work is another benefit of downsizing, especially if you choose to purchase a condo and or seniors only accomodations. I have two young children, thus I have a larger house and the kids have their own room for privacy.

7. 
    
   Enjoy retirement as much as you enjoyed working

   Despite the tough economy in America, you can have it all as long as you plan well enough in advance of your transition from work to retirment. I did it and so can you. I chose to become an entrepreneur and it has created many wonderful opportunities for me. I'm as active as I've ever been and so should you. I exercise five times a week, walk, cook, and enjoy my family. Volunteering to help those less fortunate is also an excellent way to stay active and make a difference in the lives of others. Retireing on your own terms is the key to a successful transition to retirement. I recommend you visit www.aarp.org to learn more about retiring. Go out and have some fun while you're at it!

Tips & Warnings

• Ensure you have enough money before you retire
• Include your family in your transition plans
• Maintain the relations you have with your colleagues
• Remain relavant during your retirement
• Call on your financial advosrs to help you navigate the economy
• Put a puncutation mark on having fun during retirement
• Don't sit at home and do nothing, it will create long term problems
• Maintain a strict budget, you won't need to purchase a lot of clothing, etc
• Stay connected to what's happening in your community, get involved
• Spend timee with your grandchildren, however don't try to become their parent

[Financialxpert]

on 12/2/2008 I thorouhly agree with your comment and viewers should read your articles and look at your website because it has content rich information on your blog, etc. Thank you for your response and I look forward to networking more.

[WriterGig]

on 12/2/2008 Very thorough article with great advice! Anyone planning to retire in the next ten years should look into creating residual income online as a replacement to money lost in stocks, etc.