Catherine Reed, Author at Beating Broke

Ready to Retire? Make Sure You’ve Hit These 9 Financial Milestones

July 24, 2025 By Catherine Reed Leave a Comment

Retirement is a significant life event that many look forward to, but it comes with its own challenges, especially financially. Being ready to retire isn’t just about reaching a certain age; it involves meeting key financial milestones that ensure you can enjoy your golden years without financial worry. Here, we explore nine essential financial milestones to achieve before you decide you’re ready to retire. These goals will help you assess your readiness and ensure a solid financial foundation for the next phase of your life.

1. Debt-Free Living

One of the most crucial financial milestones before retirement is eliminating high-interest debt, particularly credit card debt and personal loans. Carrying debt into retirement can significantly strain your finances, as fixed retirement income might not cover debt repayment and living expenses. Ideally, your mortgage should also be paid off, allowing you to live more freely without the burden of monthly loan payments. This milestone ensures that your retirement savings and income are devoted to your living expenses and enjoyment rather than paying off debts.

2. Building Adequate Retirement Savings

Ensuring you have enough saved to cover your retirement years is critical. Financial experts often recommend having at least 10-12 times your final pre-retirement salary saved. This should ideally be a mix of retirement accounts like 401(k)s, IRAs, and other savings or investment accounts. If you haven’t already figured out how much money you need in retirement, assume at a minimum that you’ll need 75% of your current salary. Next assume you can withdraw 4% from your nest egg per year. Then compare the two figures. This should tell you if you’ve got enough saved.

3. Healthcare Planning

Healthcare costs in retirement can be significant. Having a comprehensive healthcare plan, including Medicare and supplemental insurance, is crucial. Consider the costs of long-term care insurance, which can cover expenses not included in regular health insurance. Being prepared for unforeseen health issues by having this coverage in place can prevent significant financial strain later.

4. A Tested Retirement Budget

Before you retire, test out a retirement budget. Try living on your expected retirement income for several months while still working. This will help you adjust your spending habits and ensure your budget is realistic based on your retirement income. This trial period can reveal unexpected costs and help you refine your budget before you fully commit to retiring. Remember, nothing says you have to stop working in retirement – you can always work on smaller projects to bring in money or take a part time job.

5. Diverse Income Streams

Relying solely on savings or Social Security can be risky. Having multiple income streams can provide extra security. Consider rental properties, bond payments, dividends from investments, or a part-time job if you want to keep working. This diversification helps buffer against poor market performance that could affect your primary retirement funds. A good place to start is by finding dividend stocks with an AI generated list. Or, if you want an old fashioned human curated list, a good place to start would be the dividend aristocrats – or companies that have consistently raised their dividends for decades (here).

6. Updated Estate Plan

An updated estate plan is vital as you approach retirement. This includes having a will (or revising your current one), designating powers of attorney, and potentially creating trusts. These documents should be reviewed and updated to reflect your current wishes and ensure your assets are distributed according to your plans without legal complications.

7. Long-Term Investment Strategy

Having a long-term investment strategy that shifts from accumulation to income generation is crucial. This strategy should be less about aggressive growth and more about preserving capital and generating a steady income. A financial advisor can help, but there are plenty of DIY tools available as well. Most of the major brokerages like Schwab or Fidelity offer these kinds of tools – check your portfolio check up section.

8. Social Security Strategy

Deciding when to start taking Social Security benefits is a significant decision. Although you can begin collecting benefits at age 62, delaying benefits until your full retirement age or even age 70 can significantly increase your monthly payments. Evaluate your health, financial needs, marital status and life expectancy to make an informed decision that maximizes your benefits. Schwab has a good basic overview of factors pertinent in deciding when to take Social Security, here.

9. A Plan for Leisure and Lifestyle Goals

A major factor many retirees face when they first begin retirement is cognitive decline and associated mental health issues such as depression and anxiety. However, research shows that an active lifestyle including maintaining hobbies and building or maintaining strong interpersonal relationships can reverse this decline (per Forbes). Whether it’s traveling, hobbies, or spending time with family, make sure you plan how you want to spend your time. This includes budgeting for activities you enjoy and considering any potential costs associated with these pursuits.

These Financial Milestones Could Mean You’re Ready to Retire

Achieving these financial milestones can make the difference between a stressful retirement and a fulfilling and secure one. Being ready to retire means more than just stopping work; it involves meticulous planning and preparation to ensure your retirement years are as enjoyable as possible. Each milestone is a step toward creating a stable and rewarding retirement experience, giving you the peace of mind to fully enjoy this new chapter of your life.

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Catherine Reed

Catherine is a tech-savvy writer who has focused on the personal finance space for more than eight years. She has a Bachelor’s in Information Technology and enjoys showcasing how tech can simplify everyday personal finance tasks like budgeting, spending tracking, and planning for the future. Additionally, she’s explored the ins and outs of the world of side hustles and loves to share what she’s learned along the way. When she’s not working, you can find her relaxing at home in the Pacific Northwest with her two cats or enjoying a cup of coffee at her neighborhood cafe.

7 Places You Are Wasting Money on Fast Food

June 13, 2024 By Catherine Reed Leave a Comment

Fast food is often a convenient option for a quick meal, but there are certain places where it’s better to avoid spending your hard-earned money on fast food. Whether due to health concerns, high prices, or simply poor quality, knowing where to skip the fast food can save you from wasting money on disappointing meals. With an increasing focus on health and budget-conscious living, it’s crucial to identify these locations. Here are seven places you should stop wasting money on food.

1. Tourist Traps

Fast food restaurants in popular tourist areas often charge higher prices for the same items you could find elsewhere. These establishments take advantage of the high foot traffic and limited dining options available to tourists. Food quality can also be subpar as these locations prioritize speed and volume over quality. Instead of wasting money on overpriced and mediocre fast food, seek local eateries offering a more authentic and affordable dining experience.

2. Airports

Airport fast food options are significantly more expensive than their counterparts outside. The convenience of grabbing a quick bite before a flight often comes at a premium, with inflated prices for basic menu items. Additionally, the quality and freshness of the food can be compromised due to the high turnover and the logistical challenges of airport catering. To avoid wasting money on overpriced and potentially lackluster meals, consider bringing snacks or dining before heading to the airport.

3. Gas Stations

While it might be tempting to grab a quick meal at a gas station fast food outlet during a road trip, these locations often offer low-quality options. The focus is typically on convenience rather than nutrition or taste, resulting in meals that may be greasy, stale, or lacking in flavor. Moreover, the limited selection at these spots can leave you with few healthy choices. Instead of wasting money on food that is unsatisfying, plan your stops at reputable restaurants along your route.

4. Sports Venues

Fast food at sports venues is notoriously overpriced, inflating prices to capitalize on the captive audience. The food quality often doesn’t match the high cost, leaving you with an expensive yet unsatisfying meal. Additionally, the limited options available at these venues can mean sacrificing nutritional value for convenience. Avoid wasting money on overpriced fast food at sports events by eating beforehand or bringing your own snacks if allowed.

5. Amusement Parks

Fast food in amusement parks can be shockingly expensive, with prices reflecting the high demand and exclusive access. Plus, inflation and other factors are pushing prices up even more. The quality often falls short as well, with food that may be pre-made and reheated rather than freshly prepared. The combination of high prices and mediocre quality makes amusement park fast food a poor investment. To save money and enjoy better meals, consider packing your own food or leaving the park for meals if possible.

6. Highway Rest Stops

Highway rest stops often feature fast food outlets that cater to travelers looking for a quick bite. However, these locations typically offer overpriced and uninspired menu options. The convenience comes at the cost of quality and value, with meals that are often less satisfying than those from standalone restaurants. Instead of wasting money on highway rest stop fast food, plan your stops at well-reviewed local diners or restaurants just off the highway.

7. Train Stations

Similar to airports, train stations often feature fast food options that are both overpriced and of questionable quality. The convenience of grabbing a quick meal before boarding comes at a significant markup, with limited choices that may not meet your taste or nutritional standards. The rush to serve many passengers quickly can also impact the freshness and overall quality of the food. To avoid wasting money on subpar fast food at train stations, plan your meals ahead or explore dining options near the station.

Stay on Budget by Not Wasting Money on Fast Food!

Avoiding fast food in these seven places can help you save money and enjoy better meals. By being mindful of where you spend your money on food, you can make healthier and more satisfying choices. Whether traveling or enjoying a local outing, planning your meals and seeking out quality options can enhance your overall experience. Stay conscious of these common fast food pitfalls to avoid wasting money on disappointing meals.

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Retirement Boredom Busters: 9 Ways to Spice Up Your Golden Years

June 12, 2024 By Catherine Reed Leave a Comment

Retirement marks a new chapter in life, offering the freedom to explore new interests and hobbies. However, the lack of a daily routine can sometimes lead to feelings of boredom. Finding engaging activities can transform your golden years into a period of excitement and fulfillment. Here are nine ways to bust retirement boredom and maximize your newfound free time.

1. Travel the World

Traveling during retirement allows you to explore new cultures and create lasting memories. Whether it’s visiting countries you’ve always dreamed of or taking road trips across your own country, the opportunities are endless. Traveling can be both educational and exhilarating, providing a break from the usual routine. Planning trips and discovering new places can significantly reduce retirement boredom.

2. Learn a New Hobby

Retirement is the perfect time to pick up a new hobby you’ve always been interested in but never had time to pursue. Whether it’s painting, gardening, or playing a musical instrument, learning something new can be incredibly fulfilling. Hobbies provide a sense of accomplishment and keep your mind active. Engaging in a creative or physical activity can be a great way to beat retirement boredom.

3. Volunteer Your Time

Volunteering offers a chance to give back to the community and stay socially connected. Many organizations always need helping hands, and your skills and experience can make a significant impact. Volunteering not only helps others but also gives you a sense of purpose and belonging. It’s an excellent way to keep retirement boredom at bay while making a positive difference.

4. Try a New Fitness Routine

Staying physically active is crucial for maintaining health and well-being in retirement. Joining a gym, taking yoga classes, or simply going for daily walks can keep you fit and energized. Fitness activities also provide opportunities to meet new people and form social connections. Regular exercise can be a fun and effective way to combat retirement boredom.

5. Enroll in Classes

Many educational institutions offer courses specifically designed for retirees, covering a wide range of topics from history to technology. Lifelong learning keeps the mind sharp and can open up new areas of interest. Taking classes can also provide a structured routine and opportunities to socialize with peers. Expanding your knowledge can make your retirement years both exciting and intellectually stimulating.

6. Join Social Clubs

Social clubs and groups cater to a variety of interests, from book clubs to hiking groups. Joining these clubs can help you meet like-minded individuals and form lasting friendships. Regular meetings and events structure your weeks and are something to look forward to. Being part of a community can significantly reduce feelings of retirement boredom.

7. Start a Small Business

Starting a small business can be rewarding if you have a passion or hobby that you can monetize. Whether it’s crafting, consulting, or running an online store, entrepreneurship can keep you busy and engaged. Running a business provides a sense of purpose and the thrill of working on something you love. It’s an excellent way to stay active and beat retirement boredom while potentially earning some extra income.

8. Spend Time with Family

Retirement offers the perfect opportunity to spend more quality time with your family. Whether it’s babysitting grandchildren, planning family gatherings, or traveling with loved ones, these moments can be incredibly fulfilling. Building stronger relationships with family members can provide emotional satisfaction and joy. Sharing experiences and creating memories can significantly alleviate retirement boredom.

9. Explore Technology

Embracing technology can open up a world of possibilities for staying connected and entertained. Learning to use social media, video calling, and other online platforms can help you keep in touch with friends and family. There are also countless online courses, games, and streaming services to keep you engaged. Exploring technology can be a fun and effective way to combat retirement boredom and stay mentally active.

Take Advantage of These Retirement Boredom Busters and Spice Up Your Golden Years!

Retirement boredom can be easily overcome with a bit of creativity and willingness to explore new activities. There are countless ways to spice up your golden years, from traveling and learning new hobbies to volunteering and staying active. Embracing these opportunities can lead to a more fulfilling and enjoyable retirement. By staying engaged and pursuing your interests, you can transform your retirement into the best years of your life.

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