We all want to retire one day, but it can be hard to know what you’ll need for the future. With these tips, you’ll be able to plan for a more comfortable retirement and add years of happy living to your life!
Can you really afford to retire?
The first thing you need to do is make a plan. You should have a good idea of how much money you’ll need to retire and how much money you’ll have at your disposal to fund those expenses.
What will the average monthly cost of living be after retirement?
To figure that out, ask yourself the following questions:
- Track how much you are spending each month – every dollar.
- Take that number and grow it up by 2.5% until your planned retirement age
- Add in annual expenses. Things like family vacations.
- Don’t forget about taxes–your monthly spend is with AFTER TAX dollars
This will give you an idea of your annual income need.
More Parts
- What’s your average retirement going to look like?
The average retirement lasts 20 years, according to U.S. News & World Report.
- How much will Social Security help in your golden years?
According to Nerdwallet, the average Social Security benefit is $1,404 per month right now (as of January 2019).
If you are entitled to an employer pension, is it enough to pay all your expenses?
- If you are entitled to an employer pension, it is important to know how much of your income it will replace and how long it will last.
Some employers offer lifetime pensions; others offer only a set number of years’ worth of payments.
Do you need a conservative or a more aggressive portfolio?
You can’t control the market, but you can control your portfolio. So when it comes to retirement, there are different options for how much risk you want to take: conservative to aggressive.
If you’re a conservative investor, then your goal is to preserve capital and minimize losses at all costs. You will probably choose investments with lower expected returns than more aggressive investors and avoid stocks entirely due to their volatility (the amount of fluctuation in price over time).
However, if you choose to a build a portfolio strictly for capital preservation, your money may run out sooner than you think if you have to make a large unexpected withdrawal.
It’s best to balance your assets so you can handle unexpected events but still have long term growth.
How will you deliver health care benefits in retirement?
If you want to retire with the protection of health care benefits, you’ll need to plan ahead. There are three primary ways that retirees receive health care coverage: Medicare (if they qualify), VA health care and/or employer-provided health insurance.
Long Term Care insurance is another type of insurance to consider near retirement. This type of coverage helps to pay for custodial care at home, at an assisted living facility or a nursing home.
Do you have a will?
A will is a legal document that specifies the distribution of your assets. It is an important document because it ensures that your wishes are carried out. If you don’t have a will, your assets will be distributed according to state law and this may not be in accordance with what you want. If you have children under 18, they will receive their share of your estate directly from the court until they turn 18 years old or become emancipated (i.e., marry).
This is just one reason why it’s so important to have an estate plan in place before retirement!
You need these things for retirement
Retirement is the time for you to relax and enjoy your life. So let’s recap.
It’s important that you have a plan in place for retirement.
Tracking your income and expenses today will give you an idea of what you need on a regular basis in retirement.
If you have health issues or disabilities, it may be necessary for you to get insurance coverage through Medicare or Medicaid so that they can pay for the medical care that they need when they’re older.
Having a will allows their family members or other loved ones carry out their wishes after their death when they cannot do so themselves anymore
Conclusion
There are a lot of variables that go into planning retirement, but you can’t just wing it. You need to know what you’re doing before you decide on your options or take action. It is important that you take the time now so that when the time comes, your decisions will be well informed and easy ones at that!
