Are you worried your savings, stocks and Social Security won’t be enough to finance your retirement? You aren’t alone.
According to a 2014 Gallup poll, more than half of Americans – 59 percent – are concerned about the depth of their retirement funds. Will they have enough in the bank to retire on time?
You don’t want to work full time until you’re 80. Nobody does. So to help you plan, these five tips can become your main guidelines during your retirement planning process. Consider how you can extend the life of your assets now so you don’t struggle later.
1. Don’t Neglect Your Budget
To many, retirement means being able to spend money without thinking about the consequences. Since you don’t have to go to work everyday, you should be able to kick back and relax, pursue your hobbies, and yes, spend money on whatever, whenever.
It’s time to put this dream to rest, because that’s what it is – a dream. Even in retirement you have to stay financially conscious and stick to a daily living budget. You will need to govern your money in much the same way you do now. Construct spending limits for groceries, entertainment and vacations. That’s the only way you will live within your means and keep enough retirement funds on hand to last the rest of your lifetime.
2. Invest in Your Portfolio – But Also Quality Financial Advice
If you’re close to retiring and don’t have a reliable financial advisor, now is the time to look for assistance. There are many different schools of thought when it comes to investing in your later adult years. Unless you’ve had a successful career in finance, experienced senior retirement financial advice will literally pay for itself.
You can talk to an advisor about how to cut your tax burden, how to maximize growth in your portfolio and how to shelter at least a few years of living expenses from fluctuations in the stock market.
3. Move to a Home That Matches Your Lifestyle
One simple way to improve your quality of life and extend the life of your retirement funds is to pay for housing that contributes to your desired lifestyle. For instance, if you plan on leaving your current large country home and driving to the city every day for socialization with friends, you might do better to relocate to your desired location ahead of time, purchasing a small, one-level condo within the hustle and bustle. You will cut out other costs like transportation in the process.
4. Consider a Part-Time Job
You can “retire” without really retiring. If you believe you and your finances will stagnate without at least one part-time job to get you through the week, don’t hold yourself back. You could become a real estate agent, a tutor or a seasonal customer service employee. You can add extra spending money to your budget while getting out of the house for a few days a week – not a bad idea.
5. Get Covered: Get Insured
One of the most important financial moves any newly retired senior must make is to address all insurance coverage concerns. If you are living with a condition not covered by Medicare, you could end up paying thousands of dollars per year from your own retirement funds for medications, treatment and medical equipment. This is a sure way to drain your accounts before their time.
Instead, talk to the team at My Senior Health Plan and explore supplemental insurance plans that could fill in the gaps in your coverage as well as help you prepare for other potential medical crises down the road.