Friday, July 29, 2016, AM | Leave Comment
While the prospect of not working may be an exciting change, the idea that you will need to survive almost entirely off your savings may seem a little daunting.
Now, today, is the time to prepare for your future.
Here are a few dos and don’ts that will make planning for retirement easier.
Don’t Forget About Health Insurance
Don’t forget to double-check whether you will be covered by a health insurance policy.
Your Medicare may not begin until years after you have retired. Therefore, you won’t be covered if your employer handled your health insurance and you then retired, unless you sign up for a health insurance program.
Do Anticipate Expenses
Anticipate your expenses when you retire. You can base this partially on your current expenses, but there are some expenses you will no longer have as you retire, such as the costs associated with your morning commute.
Don’t Focus Only On Retirement
Do not focus on retirement alone. Consider what you want to do with your retirement.
Make sure that you budget for all the things you dreamed to do, whether this means traveling to see family members or spending more time on a boat.
Do Plan Long Beforehand
Plan long before you retire. The first 12 months before you retire can be very stressful, so it is better to prepare before then so you can transition into retirement more smoothly.
Looking at the actual numbers and determining that the numbers make sense will help you stay on top of the process.
Experts at Family Financial Partners encourage retirement planning to begin well before you near the age of retirement.
Search for a financial planning correspondent that specializes in retirement planning services and will assist you throughout each stage of retirement planning.
Don’t Let The Market Stress You
Don’t panic over major changes in your retirement portfolio. For instance, if your investments are falling in value, be patient and the market will likely rebound.
With a diversified portfolio, some of your investments will perform better than others. Even if you are losing money now, this does not mean that you will continue losing money.
Remember that each dollar you save will be worth much more in retirement. The interest that is paid by your savings account is based on how much you contribute to the account.
So, remember that each dollar you add is making you much richer in the future.
The idea of finally retiring and living off the fruits of your labor is exciting. You will have time to spend with those you love, travel and do what you always dreamed of doing.
As long as the numbers work, you’ll have a savings that you can live entirely off of.
Meghan Belnap is a freelance writer who enjoys spending time with her family. She also enjoys being in the outdoors and exploring new opportunities whenever they arise. Meghan also enjoys researching new topics that help to expand her horizons. You can often find her buried in a good book or out looking for an adventure. You can connect with her on Facebook and Twitter.