Reduce Stress and Retire Happy

We look forward to retirement at the end of our career, happy in the thought of the next phase in our lives. We think the transition from set routines and busy work schedules will be an easy one, but retirement in itself can be stressful. Couples who have grown accustomed to being together on an infrequent basis now find the togetherness may cause unexpected stress. Retirement represents a radical change in expectations and, at times, a complete role reversal. It becomes increasingly difficult when one partner retires before the other, resulting in possible anger and resentment. Why should I have to go to work, while you stay home and enjoy life? Or, the partner who once stayed home alone now has someone invading his or her space.

With some forethought, understanding, and planning, there are ways to reduce stress and retire happy. Just because you now have the freedom and perhaps the financial resources to do exactly as you please, without planning, retirement will not be what you expected. Begin to plan retirement well before it arrives by discussing activities to share, the travel and entertainment you both enjoy, and the individual interests you expect to pursue.

Single people approaching retirement may also find themselves at loose ends, what to do with so much extra time. Think about the things you've always wanted to do and be happy in the thought of occupying yourself with a hobby, spending more time with family or friends, and even part-time work, following the leisurely schedule that only retirement allows. Reduce stress and plan on retiring happy.

College or Retirement?

College for the kids or retirement for you? Which goal has the highest importance? Or can you possibly save for both? These are a couple of the most frequently asked questions of financial planners.

First off, don't criticize yourself about your money management. It is very difficult to accomplish either one of these goals. The purchasing power, the company pension plans, the increase of education and starting families earlier play a huge part in such difficulties.

And let's face it -your retirement should have an emphasis on your own life. Let your children go to a high-priced four-year private school if you wish, and give them the gift of learning to use their money wisely by paying for it themselves. Look at it from this point of view, if you spend your money on college, then a few years into retirement your savings will be gone. Your social security may not be enough to make ends meet.

Just ask my 90-year-old great aunt how far her $638 Social Security check stretches each month!

The best thing to do for your family is to stay financially strong, and put your retirement first. It may sound selfish, but it is truly the best strategy for your family overall.

If you want to try to save for both, here's some advice. Start while the children are young, and set them up a bank account. Many financial planners recommend that children set aside 25% of their earnings into this bank account. This could be money earned from chores, good grades or even holiday gifts. When the child reaches high school age, then they can start a part-time job and supply that percentage through their earnings. This will not only help save money for college, but it will help teach your children important economic lessons.

So again, pay attention to your future first and your children will appreciate it in the long run. Don't let something like not paying for college get you down. Your children will need you throughout their life far more than your money. The protection of your finances will ensure an independent retirement and leave no burden on future generations.