How to Properly Prepare for Retirement
Retirement
Retirement is something you might get lucky enough to enter without planning.
However, proper planning not only makes your retirement more likely to happen in the first place, but it also should improve the number of retirement years and the quality of each of them.
Where to Live
Many retirees head for warmer climates. Florida is a common example in the East, and Arizona is popular out West.
However, you might want to do that. Moving into a vacation home you’ve owned for a while might appeal to you, but you might also want to be close to family in your final years.
If you had kids, then downsizing once you’re empty-nesting might make sense.
Sometimes, an apartment is a good way to go since you get out of handling maintenance, yard work, and property taxes.
Financial Preparation
Retirement isn’t usually as simple as treating your nest egg like an ATM machine.
You might decide to generate some income from freelancing, part-time work, or hobby income.
Also, since you might not have any idea how long retirement will last, you should plan on generating income for as long as you can.
Dividend stocks and bonds can do this, but you might also want to consider buying an annuity for payments that you can count on coming on a regular basis based on the specific terms and conditions.
Overall, income planning can be something that is reviewed quickly once a month or once a quarter. This way you can ensure you are on track with your goals.
Health Care
The oldest members of the population usually account for the majority of health care spending across the country.
Programs like Medicare and Medicaid might help you with your health care costs, but they’re unlikely to cover every single expense you might face.
Figure out how to afford health insurance coverage in the years when you’re not likely to be getting employer-based insurance anymore.
End-of-Life Planning
End-of-life planning involves more than just making out a will these days.
You need one, of course, but you also need to update it regularly.
You also need to decide on who might make health care decisions for you if you are incapacitated and even dictate how far doctors might go to keep you alive.
Make These Years Actually Golden
Your retirement years, their quality, and how you spend them will all largely be the consequences of the decisions you make years ahead of time.
Knowing how to properly prepare for retirement helps you make good decisions, but it’s still up to you to choose wisely.
Category: Retirement
