Does planning for your retirement seem like a daunting task?
That’s because it can be!
Would a roadmap to your retirement planning help?
Of course, if it is the right roadmap!
We all know we can use a roadmap, but if it’s not the right
roadmap, to where we need to be then it is not going to get us to our desired
destination.
It’s the same when it comes to our retirement, if you don’t
have the right retirement map, you are not going to have the retirement you
dreamed of.
So now you may be asking
yourself, what should MY retirement roadmap look like?
Here are a few essential guide lines for avoiding any wrong
turns!
The number
one thing to remember is you need to change road.
The types of investments that have served you well through
your working years may not be suitable for you heading into your retirement
years. You now need investments that
will give you wealth preservation and income rather than growth and income. Taking too much risk in your retirement years
can be devastating and you may not be able to recover.
Remember the
journey may be long.
We cannot forget about longevity, this is a huge concern for
retirees nowadays. Did you know that if
you are in decent health by age 65 you can probably expect that your money is going
to have to last you for about 25 years. Statistics show us that living to age ninety is very realistic nowadays!
Watch out
for bumps on the road.
Unplanned
healthcare costs can have devastating effects on your retirement plan. Even planned healthcare is a financial
challenge on your retirement plans, as studies show that the average 65 year
old couple need around $283,000 for medical expenses in their retirement AND
that’s before even taking into consideration
EVEN needing long term care.
Be aware of
any unseen obstacles that may in the road.
Something that can be so easily overlooked in your
retirement years is inflation. Why? Well most likely throughout your working
years your wages have risen as the cost of services and goods have risen, so you
have never really had to think about it too much. But in retirement when it comes to living of
your savings if you haven’t planned for it, inflation can literally ROB you of
your income.
Look out for
changes in the road ahead.
Taxes most people are expecting this change to be a positive
one. But this is not necessarily the
case. You see to maintain the same
standard of living (as I am sure you desire) you need to maintain the same
income. But what we often forget is that
we also no longer have those deductions that we once had, like kids, mortgage
etc. This usually then leads to your tax
bill going up rather than down. So you
need to find other ways to now be more tax efficient to protect your nest egg.
Lastly don’t
forget to look out for others along the road.
And to do this you must not forget the importance of Estate
Planning within your retirement plan. By
doing this you are ensuring your assets go where you want to them to. Making sure that your loved ones avoid
probate and having to pay any unnecessary taxes that may occur when you pass
on.
239-288-0977
288-0977
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