Extra Expenses You Should Fit into Your Retirement Fund
Saturday, March 5, 2016, 6:00 AM | Leave Comment
Retirement is an important stage in life, transitioning you from the busiest years of your life, to time spent relaxing and enjoying the fruits of your labor.
If you plan carefully, you can use this time as a crowning achievement by living off your built-up savings.
Besides every day expenses, you might want to add some extra expenses to your retirement fund to make sure it lasts.
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Living on Savings
Every human life follows a natural progression and after several decades, we tend to develop certain lifelong habits, which are tough to change for retirement.
The obvious challenge is to survive on a limited budget. All retirement funds will have core funds for housing, groceries, and health. The following extra expenses might also be needed.
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Taxes
Unexpected property taxes might go up for a special project, educational funding may be required, or a budgetary shortfall could mean your taxes rise.
Adding a little extra to pay for rising taxes ensures you don’t need to steal from essential budgetary items.
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Entertainment & Vacation Time
You still want to have fun during your golden years. And regular movies or concert performances can keep you feeling young.
Schedule an annual vacation and plan out what your entertainment costs might be throughout the years.
Adding the funds now can ensure you remain financially able to go wherever you want to.
Be careful with expensive hobbies that require a ton of sports equipment or technological supplies since they can very quickly break your retirement budget.
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Family Troubles
As hard as you have tried to teach your children responsibility, no one is guaranteed stress free financial lives.
As the head of the household, you might be expected to bear certain extra costs for changed family arrangements, education funds, or disability equipment.
After a car accident for example, some family member might need a little financial support to make ends meet.
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Emergency Cash
A little surplus cash can go a long way towards protecting you against any calamities.
Home belongings not covered by insurance, vehicle repairs, or a special holiday gift can be listed here.
This rainy day fund could be a lifesaver.
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Burial
Burial funds should also be included in your retirement plans. Prepare ahead-of-time by contacting places like Elmwood Casket Company to ensure that you have a dignified final resting place and that these important preparations aren’t left to chance.
Select a headstone and grave at the local cemetery, and if you have special instructions for your ashes, make them available to family as soon as you are able.
A golden retirement is possible if you plan ahead. During your most productive income-producing years, save the retirement funds you need and keep a little extra to pay for the unforeseen expenses.
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