Planning for Retirement: Four Things You Probably Forgot
Monday, June 6, 2016, 6:00 AM | Leave Comment
Everyone ought to plan for retirement. And while we all try our best, there are things that are either neglected or completely forgotten in your finances.
To plan a foolproof retirement, here are four things you are probably forgetting to include.
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Including Bonds in Your Portfolio
US Treasury bonds have always been a safe long-term investment vehicle. Unfortunately, they are deserted for other “hotter” and more “trendy” assets like binary options and currencies.
Bonds are basically debt, and buying US treasury bonds means you are lending the government money. What could be safer than lending money to the government?
Although interest rates gained from bonds are not exactly enticing, a 30-year bond can yield as much as 3 percent in interest rate, which is great if you have a decent sized fund to allocate and invest.
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Accounting for Your Funeral
Although your retirement is probably years away from the end of your life, it makes strategic sense to account for funeral costs. You don’t want to leave your family or spouse to have to pay for everything. A grave plot alone will cost a few hundred dollars.
Failing to account these expenses can strike a huge blow on your retirement funds and prohibit you from living the lifestyle you’ve worked so hard for all these years.
Shop around at places like Elmwood Casket Company and local funeral parlors to come up with a good financial plan for the end of your life.
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Long-Term Care Insurance
As healthcare costs continue to rise, retirees will have to make some difficult decisions that will affect their lifestyle.
The ever-present possibility of some long-term care event can be a haunting scenario to play over and over. You simply don’t want to get sick in your retirement years and not be able to pay the healthcare expenses for it.
Make sure you have some savings or investments ready for this kind of event so you don’t straddle loved ones with the extra costs.
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Pension Benefits and Payout Structure
A vast majority of people get so caught up in how much they should save and what penny-pinching methods they can use to achieve their future retirement goals that they forget to select specific pension benefits and payout structure.
Ideally, you’d want to consolidate all your individual retirement funds as you near your planned retirement date. Leaving money in different places will make it more difficult to manage since you’ve got too many statements and contracts to keep track of.
While retirement planning is best done at a younger age, it’s never too late to start saving for your later years.
Moreover, mistakes can be mended and there is always time to affect positive change in your future budget. Whether your retirement date is ten or just one year away, it’s possible to add things you’ve forgotten about.
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