5 Things You Can Do NOW for a More Comfortable Future
3. Have a budget and stick to it!
Unless you are part of the‘ rich and famous’ our income is fixed and we all need to follow a budget. Unfortunately, we live in a‘ I want it now’ society so it isn’ t always easy to stick to a budget. However, if you want to be comfortable in retirement you will need to learn to budget. This doesn’ t mean you won’ t enjoy life – it will mean you won’ t incur huge debts which you can’ t repay. Learning to budget means retirement should be more comfortable and less stressful.
4. Insurances
Do you know if you are adequately covered? There are various types of insurances, which are recommended and should be evaluated regularly.
By Sue Loncaric | sizzlingtowardssixty. com. au
Let’ s face it no matter what age you are, most of us really don’ t do a good job of knowing what our financial future will look like in retirement. We work to pay off our mortgages, educate our children and still hope we have enough put away to provide a comfortable lifestyle when we are no longer working. A financial planner is the best place to start. Even if you are already retired, it’ s never too late to get guidance to help prepare for your future.
Here are five things you can do to secure a better retirement:
1. Meet with a financial planner
Most of us have never had a professional financial plan or assessment completed on our finances. Having a financial assessment will clearly define where you are and what you need to do to provide future financial security.
A financial planner can also suggest ways to utilize your assets in retirement and any tax benefits available to you. Should you take your 401( k) as a lump sum? Should you have an annuity? Should you have a self-managed retirement fund? These questions can be answered by a competent and reliable financial planner.
2. Calculate how much you will need in retirement
If you sit down and list what you think your future expenses will be in retirement and also include‘ wish lists’ such as travel, entertainment and lifestyle, you may be surprised at how much you will actually need to retire. Again, a financial planner can assist with this or there are web-based calculators which will give you an indication of how much 401( k) or other forms of investment you will need, to have the lifestyle you want.
• Life insurance Life Insurance policies come in many forms so be sure you understand what type you have. Term life vs. whole life insurance? It may be time to re-evaluate to decide how much you ' ll need.
• Medical Insurance If you’ re younger than 65, odds are you still have coverage through your employer, but are paying into it. Be sure to understand the value of your insurance, how much you are paying into it and what it covers. From 65 on, this changes with medicare which you’ ll be enrolled in and need supplemental insurance to cover what medicare doesn’ t. Do your homework with regards to supplemental insurance, understand the costs, the co-pays, deductibles, etc.
• Home & Contents Are your possessions adequately covered?
• Funeral Insurance This is not something we like to think about, however, it is important that you know your family won’ t need to have the added burden of finding the funds for your funeral. They will be emotional and stressed enough without this. Funeral insurance is relatively inexpensive, so investigate this option rather than leaving it to your loved ones.
5. Bump up your savings
Odds are you have been saving for retirement, either on your own, or if you are lucky enough, through a company pension plan. Use these years leading up to being 100 % retired to increase the amount you are putting away. Today, many of us in our 60’ s are still working either by choice or necessity, so try to cut back on other places to put more into your savings.
Retirement may seem a long time off, especially as we are living and working longer. We can’ t assume that there will be a government pension in the future for everyone, so start thinking about how you will fund your retirement so you can enjoy these fabulous years!
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