Live a Fulfilling Senior Age Through Financial Preparedness

February 13, 2018 at 7:44 AM Leave a comment

Aging happens naturally to all of us – NO EXCEPTIONS. Needless to say, many of us fail to plan for our future. Aging well requires careful planning. In this article, we’ll tackle the steps to ensure that your financial, living and medical needs can be met as you age after retirement.

Step 1: Assess what your income will be: Assess first how much income you are currently having. Your income is composed of Social Security, pensions, annuities, and others. We’ll include investment income of any kind in the following steps.

Step 2: Identify the assets you have: Create a list of all the assets that you can use to live off after retiring. This list may include 401k’s, IRA’s, bonds, individual stocks, and investment in real estate. After determining this number, multiply it by 4%. The answer will be the income you can expect to live on each year from the listed assets. This sum, plus the income from Step 1, will be the total income you’ll have during retirement.

Step 3: Create a well-planned budget: Just budgeting is easy. Budgeting well can be hard. After knowing your income, it’s time to create a budget that will let you live comfortably within that level of income. Take note that much of this income will grow each year because of inflation, but most likely so will all your expenses.

Step 4: Reallocate your portfolio if necessary: You’ll be heading into the retirement phase of your life and investing. This will be a very different story from the accumulation phase you are utilizing up until now. It’s not good to move all of your assets to conservative cash and bonds. Instead, choosing a balanced portfolio will help provide you with protection from market drops and will endure with the pace of inflation.

Step 5: Understand Medicare: Your biggest expense in retirement can be your healthcare, as especially if you haven’t led a healthy life. What’s good anyway is that the government covers a large portion of the costs through health programs depending on where you live. You have plenty of options available. Learn what your health care plan can provide you so it’ll be easy to make an informed decision.

Step 6: Apply for extra health Insurance: Sometimes the healthcare plan does not pay for everything. Therefore, having a supplemental health insurance program plan is a must for retirees as it can fill in the gaps where the plan is deficient.

Step 7: Check out long-term care insurance: While long-term care insurances are typically expensive, the coverage is a vital part of a good retirement plan. Discover the option to protect yourself and your spouse from debilitating illnesses, which can extinguish all that you have built financially.

Step 8: Decide when to apply for Social Security: Granted that many people follow the standard guidelines when collecting Social Security, the program can be a little complicated and does necessitate some examination to decide the best time to collect for your particular needs. Get advice from a Social Security planner to help you make that determination.

Step 9: Consider retirement villages. Unlike what the popular media and culture would like us to think, living your senior age can be a lot easier and more fulfilling in retirement villages in NSW, Auckland or any state you prefer. Moving into a retirement village can be one of the best decisions you’ll do – one that can lease of life in your later years.

Take note that the retirement village option primarily a lifestyle decision. There are some financial sacrifices you’ll make in order to acquire the lifestyle benefits villages can offer. Talk to an advisor to know more about retirement villages today.

There you have it! Follow these steps and you’re bound to live a fulfilling senior age through well-executed financial preparedness.

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