One of the life’s great milestones is retirement. Many of us are saving up for retirement, doing our best to build up a nest egg that can get us through retirement, and provide the lifestyle we want.
If you want to be truly ready for retirement, one of the best things you can do is make sure you have built up plenty of assets. And you want to reduce your liabilities as well.
Build Financial Assets
If you are interested in financial freedom, you need to make it a priority to build up your financial assets. This means that you focus on the activities traditionally associated with improving your nest egg. For many people, this means investing. You can use your tax-advantaged retirement plan to maximize your ability to build assets and save for retirement. You can also include other investments, making use of dividend stocks, and the DRIPs that go with them.
Don’t forget that passive income can also be a great financial asset. Creating passive income streams can help you so that you aren’t so dependent on your investment portfolio performance. The right income streams can be a huge help during retirement, and provide you with assets. Many people also consider their homes assets. If you can add value to your home or other property, that becomes an asset you can tap during retirement.
Build Personal Assets
A successful retirement requires more than just adequate financial assets. You also need to build your personal assets. What will you do while you are retired? You need a purpose to help you get going in the morning, as well as add value to your life. A part-time job, or a hobby, can really help fill the hours and give you a sense of accomplishment. On top of that, you can enhance your retired life with friends and relatives. Develop relationships now that can be carried on in retirement. You’ll enjoy social interaction, and find yourself glad to be retired.
Your health is another important personal asset. Take care of yourself now, and you will be glad for it later. Make sure to eat properly, and engage in physical activities. Better health also usually means that you spend less on health care during retirement. If you make a point to develop healthy habits, you will most likely be in better condition to enjoy your retirement years.
Reduce Your Liabilities
While you are building your assets, don’t forget to reduce your liabilities. These obligations can drain your wealth, and reduce your ability to retire in comfort. Make efforts to reduce your debt, and to limit your recurring expenses. That way, when you retire, there will be fewer demands on your income, and you will be less worried.
It also helps to reduce your personal liabilities. Distance yourself from negative people who drag you down. Work on eradicating personal habits that are holding you back. Replace bad habits with good habits, and you will feel better about yourself and your situation. When you have fewer financial obligations, and you surround yourself with people and things that uplift you, your retirement is much more likely to be the success you want it to be.