Retirement is a milestone in life that many of us look forward to. However, it is important to remember that comprehensive retirement financial planning is necessary to ensure that you can live comfortably in your golden years. The following are some things you can do to ensure your dream retirement.
Start Planning Early
One of the best things you can do for your retirement is to start planning early. The earlier you start, the more time you have to save and invest for your future. The average American spends 20 years in retirement, according to the Department of Labor. This is why it is essential to plan accordingly.
Create a retirement budget
Creating a retirement budget is an important part of retirement planning. It allows you to understand your expected income and expenses during your golden years, and it helps you identify areas where you can cut back or save more. Your retirement budget should include all of your expected expenses, including housing, food, healthcare, and leisure activities.
Maximize your retirement savings
There are a number of retirement savings vehicles available, including 401(k)s, IRAs and annuities. However, the best retirement plans are those that offer tax advantages and low fees. Make sure you understand the different options available to you and work with a financial advisor to create a plan that maximizes your retirement savings.
Pay off debt
Paying off debt before you retire can help you reduce your expenses and provide you with more financial flexibility in retirement. Make a plan to pay off high-interest debt, such as credit card debt or personal loans, before you retire.
Pay off debt
Healthcare is one of the biggest expenses in retirement. A 65-year-old couple retiring in 2021 can expect to spend $300,000 or more on healthcare over their lifetime, according to Investopedia. Make sure you understand your healthcare options in retirement, including Medicare and supplemental insurance, and budget accordingly.
Consider working part-time in retirement
Working part-time in retirement can provide you with additional income and help you stay active and engaged. In fact, 74% of workers plan to work in retirement and 27% of retirees who are currently working are doing so because they need the money.
Evaluate your investment portfolio
As you approach retirement, it is important to evaluate your investment portfolio and make sure it aligns with your retirement goals and risk tolerance. Work with a financial advisor to create a diversified portfolio that balances risk and reward.
Prepare for unexpected expenses
Unexpected expenses can quickly derail your retirement plans. Make sure you have an emergency fund in place to cover unexpected expenses, such as home repairs or medical bills.
Understand your Social Security benefits
Social Security is an important source of retirement income for many Americans. Make sure you understand your Social Security benefits and the best time to start claiming them. Delaying Social Security benefits can increase your monthly benefit by up to 8% per year, according to the Department of Labor
Revisit your retirement plan regularly
Retirement planning is an ongoing process. Your needs and goals for legacy wealth management may change over time. Make sure you revisit your retirement plan regularly and make adjustments as needed. Consulting with a professional financial advisor can help you stay up-to-date with your financial plans and ensure you are on track to achieve your dream retirement. Robert Emmer with Silversage has a solid track record in empowering clients to achieve their retirement goals. Contact us today to learn more about our services.
DISCLOSURE:
Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation. For version 8.1 only, please add: The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. The NASDAQ-100 (^NDX) is a stock market index made up of 103 equity securities issued by 100 of the largest non-financial companies listed on the NASDAQ. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor’s results will vary. Past performance does not guarantee future results.