A good retirement takes planning.
Everyone plans to retire.
But not everyone plans to retire.
What do I mean?
Most people expect they will retire.
Unfortunately, however, not everyone puts enough thought and effort into making it successful.
According to a recent Forbes article titled “5 Key Retirement Questions You Need To Answer When You're 50 Or Older,” everyone should create a written plan to address important retirement questions.
What are these questions?
You do not want to underestimate your life expectancy.
You will run out of money if you shoot too low.
Check your family history and national averages.
After all, it is hard to "fool the gene pool," let alone the law of large numbers.
When will you be ready to retire?
You should avoid retiring because you feel you have reached a certain age.
If you enjoy working, you can keep working.
How will you fill your time in retirement?
Are you planning to travel?
If so, you will need to make sure you have funds allocated for this.
Expenses on leisure and travel will be higher earlier in retirement.
As these expenses decrease, health care costs tend to increase.
When estimating your financial needs in retirement, you should also consider inflation.
When can you retire financially?
Without saying, you will need to save enough to maintain your standard of living.
Regardless, health issues or layoffs could force you into retirement earlier.
As you age, you will experience more health issues.
That is a fact of life.
You should budget for long-term care and medical costs.
Medicare does not cover as much as most people expect.
You should pay more for a Medicare Advantage plan or add a Medicare supplement (Medigap) plan or Part D prescription coverage to a traditional plan.
Yes, your premiums will be more per month.
However, your maximum out-of-pocket expenses will be less.
How will you budget your savings?
You should modify your investment strategy as things change.
Also, do not make the mistake of overspending early in retirement.
Create a budget and stick to your plan.
Work with an experience financial advisor who specializes helping folks plan for retirement.
This investment alone, will pay for itself many times over and give you added peace of mind.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Forbes (April 3, 2018) “5 Key Retirement Questions You Need To Answer When You're 50 Or Older”