5 Ways to Reduce Financial Stress in Retirement

  • By Adam Wolf, Marketwatch
  • September 16, 2014

Planning financially for retirement can seem like an impossible task at first. I can't promise that the following five ways will eliminate 100 percent of your financial stress in retirement or provide you total peace of mind but I've found that over time it can be a good place to start on your road to a stress-free retirement.

1. Have a Plan

You come first. Put your plan down on paper of what you want to have happen in retirement. Several questions to ask yourself when preparing your plan: How much have I saved? How much do I plan to save? Where do I invest my retirement savings? How much of my retirement savings can I spend without spending too much or leaving too much on the table.

2. Seek Advice

If you require dental work do you do it yourself? Most of us would say no. This example may be a bit extreme, but you get the picture. If you are capable of financially planning your retirement yourself that's great. If you are like most of us that need a little help, then be careful in who you seek to hire to help you. Make sure their personality, experience, planning techniques and customer service match what you want in a financial relationship. There are many types of financial advisers and professionals seeking your business. Interview several and make sure you click on all levels. If you want an adviser to grow with you over time then make sure they want the same.

3. Be Proactive

If there is something in your plan you want to change along the way then find ways to do it. As life changes, so should your plan. If you are working with an adviser are they providing you with new and proactive ways to better your financial situation? Investing techniques and tools are continuously changing. They may fit your situation or not, but if you don't know about them it could hurt the success of your retirement plan.

4. Avoid Financial Noise

This one should be easy. Too many TV shows, Internet ads and magazines talking about what you should and shouldn't do financially. Too much "financial noise" can be overwhelming and may drown out information that may be helpful. Everyone has an opinion. Be careful who's opinion you are listening to. At the end of the day only your opinion matters.

5. Live Your Life After

#1 through 4, continue to live your life. Dwelling on your financial plan every day can be nerve racking and can drive you insane. Your priorities, loves and passions should come first. Overtime, you will feel more secure knowing that you have a plan and are on the right track. Imagine peace of mind. Reducing stress can help you breathe easier, think clearer and spend more time doing what you love.

This article originally appeared on MarketWatch.com and is reprinted by permission from Marketwatch.com, ©2014 Dow Jones & Co. Inc. All rights reserved.

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