Retirement is something many of us look forward to, but in reality, most are ill-prepared for. If you really want to enjoy your retirement, then take the time now to plan accordingly so that finances last well beyond your working years. After spending so much of your life working, nobody wants to spend their retirement years worrying about finances. This article addresses main points to consider as you retire.
A Retirement Plan Is Multifaceted
#1. Consider your nest egg
How much is in your savings, what type of saving vehicle(s) are being implemented, and how many years left to fund your savings are all important aspects to consider. Find out the balance of your retirement account and how it is being allocated. Is your retirement account safe or is it tied to volatile equity market? Could you afford to lose money if the market has a crash like in 2008? As people get older, their human capital diminishes, meaning that the amount of time to recover from a down market is less as you approach retirement age. As you prepare for retirement or are in retirement, less risk in a retirement plan can become increasingly attractive.
#2. Find out about your Social Security Benefits
For many people social security is a large part of their retirement plan. Find out how much your social security benefit might be either by checking your mailed statement or by calling the Social Security Administration. Also considering at what point to turn on your social security benefit is also important. Delayed disbursements can increase the payout as opposed to an earlier annuitization on social security.
#3. Don’t underestimate your HIT cost.
Don’t underestimate the three enemies to your retirement: rising health care costs, inflation, and taxes. These can have significant impact on retirement and need to be carefully examined.
#4 Examine your Long-Term Care Needs
More than 70% of all seniors age of 65 and over will need some form of long-term care in the future according the Department of Health and Human Services. You may be eligible to qualify for social security long-term care, but this could involve a possible spend-down to make a recipient approved. Long-term care can offset hundreds of thousands of dollars associated with senior expenses. The key however is to be proactive as long-term care is predicated on health eligibility and age. Financial guru Dave Ramsey recommends by age 60 a person pick up a long-term care plan.
#5. Put your estate in order
Wills do not bypass probate (property) court, and if you have a piece of physical property you will likely experience probate costs without a trust in place. An experienced estate attorney can help draft an appropriate trust to help bypass not only probate charges, but also potential estate taxes. These estate taxes can also be offset with a well-planned insurance policy, and such a policy would not require the need for an executioner or trustee. Plus, insurance proceeds are nearly always tax-free. For more specific information on trusts and wills consult a knowledgeable estate attorney.
You have worked very hard for your money & estate throughout your working life. To learn more about how we can help you plan for a safe-money retirement call 866-983-7776, or set up a no-obligation consultation to receive an in-depth look at our retirement analyzer designed specifically for you.