Thursday, December 11, 2014, AM | 9 Comments
Anyone who has reached retirement age must find ways to protect their nest egg to have enough finances to last a lifetime.
With more individuals living longer, it is vital to review the details of personal and government pension plans to understand retirement finances.
One: Understand Personal Situations
Each retiree has a different situation that requires analyzing nest eggs carefully.
One person may have a chronic medical condition that requires constant care while another retiree is responsible for caring for a disabled spouse.
The retirement package that works for one senior citizen may not work for someone else.
A senior citizen is responsible for determining how their retirement funds are used.
Two: Take Care of Essentials First
A nest egg is necessary to pay for essentials first, including housing, medical care and utilities.
There are businesses that will try to convince a retiree to spend their nest egg on investments such as second homes or stock plans.
The majority of a senior citizen’s money is needed to pay for basic living expenses, rather than non essentials.
Three: Keep Money in Easy to Access Accounts
After retirement, most senior citizens need to keep the majority of their money in cash accounts such as checking, savings and short-term certificates of deposit.
Long-term investments are not typically the best plan as people age because most senior citizens do not have enough cash for this purpose.
Four: Consider Moving to a New Location
Living in a place designed for senior citizens is a good way to manage finances with specialized amenities.
Sunshine Retirement Communities is just one example of a place meant to make life easier for a retiree with help from trained health care workers and gerontology counselors.
When medical emergencies occur, living in an assisted living facility ensures a senior citizen gets the care needed to recuperate.
Five: Remain Aware of Financial Changes
As time passes, a retiree’s financial situation will change as social security or medical insurance payments increase.
At least twice a year, check retirement funds carefully to determine if adjustments are needed to remain afloat financially.
Take time to learn about new developments in the financial world, instead of allowing someone else to control retirement funds.
In the past, someone might only need to have a nest egg that lasted a maximum of 20 years, but now many retirees need an income for 30 years or longer, leading to protecting a nest egg carefully.Facebook.com/doable.finance