Love The Hustle Blog

How to Test Your Retirement Readiness

No matter what your retirement plans are, you’ll want to make sure you’re prepared financially for anything that comes your way.

That’s why we’ve come up some important points you should use to test your retirement readiness:

Check your emergency fund

No matter how much you’ve prepared financially, it’s impossible to predict when an emergency will pop up. But that doesn’t mean you can’t prepare for it – an emergency fund is not only important for all stages of life, but it’s an incredibly vital way to test your retirement readiness.

For instance, before retiring, what will happen if you suddenly lose your job or have to repair your car? If you don’t have this fund in place, you might be tempted to borrow from your 401(k) or other retirement investments. And during retirement, taking money from your investments before you had planned to still utilize for years can throw your entire portfolio off.

Although every situation is unique, having 6-8 months of living expenses saved up will ensure you’re able to reach your golden years smoothly, and that you’ll be prepped to handle any bumps during retirement.

Make sure you enjoy retirement

Making sure you enjoy retirement is important for a lot of obvious reasons, but what you may not realize is that it can also be a financial issue. Many make the mistake of assuming their retirement will be spent doing practically nothing active. But the truth is that healthcare is rapidly improving, and more and more retirees are turning to an active retirement, especially in their early golden years.

So to test your retirement readiness, you should see if you’re able to handle your expected lifestyle (and it’s corresponding expenses) during retirement. For instance, traveling across the globe will likely cost far more than living at home would. To start doing this, take a realistic look at your retirement expectations, and begin to build them into your retirement roadmap going forward.

Do you have an advisor who can help test your retirement readiness?

Planning for retirement can be a complex process, but we make it simple at LexION Capital. We allow each client to pre-experience their retirement through a variety of scenarios with our wealth forecasting analysis tools. After finding the right goals and needs for your retirement, we then craft a unique investment portfolio to ensure you reach them without worry. To test your retirement readiness, don’t hesitate to contact us today.