When it comes to retirement planning, many people out there look at this as an opportunity for vacation and time off. While they are not far behind, many people in the United States need to look beyond the scope of their lives and affect and impact that they can have on others. That being said, to live well in retirement, you can no longer rely solely on a company pension plan or Social Security. Instead, you need to depend on how skillfully you plan and invest and whether you can make optimal use on tax-advantaged saving plans such as a 401K or IRA. As you skillfully plan, start thinking of expenses beyond the vacation spots or hobbies you had fantasized for your future. At the end of the day, you want to make sure you are financially secure. For that to happen you need to be cognizant of the other expenses that could come your way.
At a specific age, your body will tell you when things are enough. This can often times lead to various surgeries, hospital test, and overnight stays. One thing to keep in mind is that these hospital bills are not cheap. Because of this, you want to be aware of the actual expenses that you may endure during your retirement. By preplanning the worst-case scenario situations, you will be able to truly enter your retirement without any financial concerns.
No one wants to think about the struggling with debilitating illnesses or injuries, but with people over the age of 65, some sort of long-term care can be their only way of stay health, active, and alive. Any absence of planning for this preventative expense is likely a gamble at a person’s overall retirement fund. Similar to health expenses, start thinking of long-term care as an option for your retirement. Discuss with your advisor the specific amount you should be investing for this type of care. In addition, try doing your own specific research. Look at both individual care and retirement homes and the cost of living for both.
Children and Grandchildren
How many times have you gone for a visit to your grandparents’ house and had your children leave with a ten-dollar bill in their hand? Like it or not, grandparents have often proven to be the indispensable caregivers for their grandchildren. Because of that cycle, you need to make sure that you have a lump sum for those leisure and family expenses. Remember, as a retired individual, you will not have an income coming in every week to balance out those expenses. Be aware of the amount you will be spending on those specific visits and try and save more, especially a year or two before retirement.