Retirement planning doesn’t have to be stressful.
With so much going on in the world, retirement planning might not be on your mind. But, having a solid plan in place is crucial.
You never know what the future will bring, which is why preparing is the most important thing you can do. We’ve outlined the top things you need to consider for your future.
Plan to be Debt-Free
Whether it’s a car loan, mortgage, lease, or credit card debt; you shouldn’t be carrying this into retirement.
Anyone thinking of retiring should also plan to be debt-free by this point in their life. Why is it so crucial? Well, retirement often comes with a reduction in income. And, having to adjust to this decrease can make it difficult for you to make monthly payments on debt.
That’s also why we can’t stress enough how important it is to begin this planning young. Have a look at your expenses and see where you will be about 10-15 years before retirement. This will give you more than enough time to plan ahead and make sure that all of your loans and high-interest cards are not sitting unpaid.
Monitor Investments
Every savvy investor knows it’s vital to monitor your investments. This is true, especially when it comes to your retirement. You should never be leaving money on the table or locked into accounts that could be earning you more on interest.
We suggest speaking to a professional accountant or financial advisor every few years. This will allow them to analyze your expenses, investments, and goals. In turn, making sure you are in good financial standing come retirement.
Consider the Cost of Living
You will also need to take into consideration the cost of living in your golden years. This means, including the cost of inflation. Without this added factor, you might find that your funds are getting depleted quicker than you planned for.
Therefore, you will simply need to assume that the cost of living (housing, food, transportation, etc.) will go up and save accordingly.
Include Medical Expenses
As we age, we will likely need to invest more in our health and medical care. This is especially true in our retirement years, regardless of where you live.
Certain expenses such as medication, specialist doctors, equipment, and therapy can quickly add up (even more if you are on a reduced income!).
That’s why we suggest putting money aside that is specifically dedicated to your medical needs. You should also take into consideration the type of care that you would like to receive (all of which will have a different cost associated with it).
For example, someone who will be living with their family will have a reduced cost of living compared to someone who wishes to live in a retirement home or assisted living facility. Regardless, thinking ahead and planning for your medical and health needs is critical to a higher quality of life.
Update Wills, Beneficiaries and Power of Attorney’s
Every few years, you should take the time to review your estate. Estate planning is necessary to ensure that your legacy, money, and assets are allocated exactly as you want them to be.
We recommend speaking with a professional, just like us at A.P Accounting and Tax Services to review these documents. We believe that the best time to get these affairs in order is when you are healthy and able to do so.
Plus, having someone review these documents can make sure you include any recently passed legislatures or additional assets that could impact plans.
Ultimately, planning ahead for your retirement is essential. Your happiness, wellness, and quality of life all depend on it. If you’d like to speak with one of our professional finical advisors, get in touch and our dedicated staff can help.
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