Everybody knows they should start planning early for the day when they retire. It’s usually easier said than done however. There is a lot of conflicting information about the best ways to accomplish this, without causing a serious reduction in the quality of your current lifestyle. Instead of putting it off until a later date, you can start now with some common sense financial strategies for retirement MI experts say will work.
It’s not a smart idea to rely on what might be available to retirees in the future. You may be planning to work as long as you can, but an illness or accident could change those plans overnight. You can’t even presume that you will be able to work part time to cover any discrepancy between Social Security and what you actually need to live. Social Security always seems to be jeopardy anyway. It could disappear before you can begin collecting it.
A savings account is great, and a good start. It won’t be enough though to carry you through after you quit working. It can be a good way to supplement your retirement income, but won’t be the main source of it. Investing is about the only way to ensure your future financially. Starting early and leaving the money in the market, making adjustments as necessary, is crucial.
Medical issues are usually a part of aging. If you believe that Medicare and Social Security are going to take care of your medical bills though, you need to talk to a seventy year old about the reality. Pensions are a thing of the past, so you can’t depend on that income. It is going to be up to you to take control of your financial future and make sure you will be independent in old age.
At some point, you need to consider purchasing a long term care insurance policy. These can be expensive, and everybody thinks they have plenty of time to get one. The reality is that assisted living, professional in home caregivers, and decent nursing homes are beyond the reach of most seniors who don’t have this insurance. At the minimum, you can make insurance a goal.
Skipping your morning mocha latte may seem like a small thing when you are trying to save money, but those designer coffees add up. Getting in the habit of being conservative with your finances, and living within your means, will mean a lot later on. Paying off credit cards and downgrading your cable package are examples of cost saving ideas.
There are other possibilities you can consider. If you have the means, real estate investments tend to be a good long term financial strategy. Rental properties will provide you with a monthly income. You have to be in a position to maintain the houses though. Owning your own home will give you security. You could consider a reverse mortgage at some point.
You will probably live long enough to retire. Whether or not you outlast your money is up to you. If you start now, there’s a good chance that you will.
Discover the financial strategies for retirement MI locals are using by visiting our website today. To know more about our goal-setting and risk management services or to sign up for one of our workshops, go to http://www.wealthsfg.com/wsfg-services now.