Senior Living | 07/16/18
Looking forward to retirement and all it has to offer? Many people long for the days of traveling, enjoying more time with their hobbies, or just relaxing after years of working hard and raising a family. Retirement is a time to enjoy life and spend more time on the things you find most meaningful. However, you’ll want to make sure you are financially prepared for this stage of life.
Preparing for retirement includes more than simply having money in the bank and keeping a list of travel destinations. You may be prepared for spending time on your golf game, but are you financially prepared for all life could throw your way? As we age, costs for care can increase and it’s important you have a plan in place to address these changing care needs.
Preparing for retirement can be intimidating. Judging how much money you’ll need for life events such as medical expenses and long-term care is difficult. However, there are several steps you can take to have a financially secure future.
Below are six financial tips to ensure you have what you need for a financially sound retirement:
It’s never too early to think about a long-term budget plan for retirement. Between planning trips and learning what your new days will look like, think about how much money you may need for each month, and year over year, as you age. Right now, it may be easy to maintain your home, but in later years you may want to think of how you’ll keep upwith ongoing repairs, lawn maintenance and winter tasks such as shoveling. It may be necessary to hire someone to help out with these chores as the years go on, and having a plan in place for these future needs can keep unexpected financial surprises at bay.
Additionally, most of us will also incur some sort of long-term care costs as we age. While this might not be pleasant to think about, advanced care needs are something you should factor into your long-term budget plans.
Schedule a meeting with an advisor who can go over your assets with you and ensure you are making wise decisions leading up to retirement. Financial advisors know the ins and outs of retirement planning and will help you plan for the future to make sure your money and assets are working for you. While family and friends may offer advice, speaking with a trained professional can help secure peace of mind when it comes to your financial future.
Many people don’t account for inflation when planning their retirement. Inflation means your money is worth less overtime. So, overtime, we’ll need to have more money than we think to retire and thrive. Over the last couple decades, the U.S. inflation rate has hovered around 2.5 percent. Putting your money into a low-risk savings account or investing in government bonds can help you make back the money you would otherwise be “losing” due to inflation. Even though these types of investments do come with risks, the return may be worth it in the end.
Prior to retiring, work hard to pay off any debt you may have. Getting serious about paying off your debt in the years before retirement will help eliminate high payments (and mounting interest) and will increase your standard of living after you retire. With fewer obligations, your money can be used for enjoying your retirement years, not paying for the past.
Health care demands can change as we age and keeping a realistic view of these possible changes is key. Keep in mind changes in your health and lifestyle can have an effect on your portfolio. Although there’s no way of knowing exactly what your needs may be, it is important to plan for changes in health care and overall lifestyle shifts. Keeping your portfolio up to date will help you and your loved ones navigate the shifting waters of your future care needs.
As hard as it may be, finding an optimal plan for staying financially healthy in the years before retirement will make life after you retire that much better. Financial health may include saying no to vacations and other big ticket items to save and pay off debt. Loaning money to family members and friends may also be off the table, allowing you to save and earn through your investments.
Having a plan in place will help you enjoy a relaxed and vibrant retirement. As you age, your needs may change, but at Meadow Lakes, we’re with you every step of the way. Learn more about the range of living options at our continuing care retirement community in East Windsor, New Jersey, and the lifestyle we offer. From beautiful grounds to activities that match your interests, you’ll enjoy each day and the incredible friendships you’ll discover at Meadow Lakes.
Ready to learn more? Contact us to schedule your personal tour.