10 Ways to Plan for Retirement
Having sufficient financial resources to live out your retirement years in comfort requires careful planning. Experts suggest that couples save seven to eight times their combined income to retire comfortably. The earlier you start saving the longer the magic of compounding will work for you. In addition to working with a financial professional at CoyleKiley to create a customized retirement plan, following these 10 ways to plan for retirement can help ensure you have the resources to enjoy your post-work life.
- A good retirement starts with being financially secure. Income in retirement can come from many different places in retirement. Sources of income may include the following:
- Social Security
- 401(k) or other retirement plans
- Employer pension plan
- Cash savings
- Annuities
- Stock portfolio
- Bonds
- Real estate
- Money market funds
- Part-time employment
- Develop a monthly budget and include allocations for unexpected expenses such as medical bills, and emergencies, as well as cyclical expenses like car and home repairs. Don’t forget to factor extras such as travel, hobbies, entertainment, or providing support to adult children or aged parents.
- Determine how to manage your investments—you may wish to consider an investment advisor experienced working with retirees.
- Monitor your portfolio to ensure that you’re comfortable with the level of risk in your portfolio and its asset allocation. Be sure you have a withdrawal plan that works for your long-term financial needs and complies with IRS rules.
- Determine what benefits will be available to a surviving spouse, after the death of the first spouse.
- Look carefully at current and projected healthcare costs, including Medicare premiums, prescription drug coverage, and the cost of any supplemental plans.
- Consider whether to purchase long-term care insurance. How will you and your spouse or partner manage if one of you needs nursing care, assisted living, or in-home care? Consider consulting with an attorney knowledgeable about how to lawfully protect assets if you or your spouse needs long-term care.
- Consult with an estate planning attorney to determine how you wish to provide for a surviving spouse, children, etc. If you do not plan and prepare a will or, if appropriate, a trust, your assets will be distributed according to your state statute in a way that may or may not be consistent with your wishes.
- Be certain that your spouse, children, or someone else you trust knows where all of your important papers are so that he or she can identify IRAs, 401(k) plans, wills, life insurance policies, brokerage accounts, etc. In the event of your disability, serious illness or death, someone may need immediate access to funds to cover expenses, pay routine bills, etc.
- If you plan to retire before you are eligible for Medicare, determine what medical insurance you will use. You may be eligible to continue an employer plan under COBRA or state “mini-COBRA.” Determine options under the Affordable Care Act.
Start Your Retirement Plan Today
These 10 tips can help you start planning for retirement today. If you want a more curated plan, a trusted CoyleKiley financial expert can help you customize a retirement plan tailored to your situation. Contact us today to see how we can help you start planning for your dream retirement.
The content of this News Brief is of general interest and is not intended to apply to specific circumstances. It should not be regarded as legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. © 2024 Zywave, Inc. All rights reserved.
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