SAVING YOUR MONEY FOR LIFE: 5 tips on making the quick dash to cross the Retirement plan finish line.
Looking forward to retirement? Please don’t be like the many millions of Americans who say, “ I wish I would have just taken the time to prepare early”. According to the 2010 Retirement Confidence Survey by the Employee Benefit Research Institute, though 69 percent American workers have saved for retirement, only 16 percent are very confident that they have enough money for a comfortable retirement.
If you are among the 84 percent, and approaching retirement, don’t repent for what was gone undone; instead, gear up to get retirement planning back on track. Here are five tips from The Money Times:
1. Downsize Lifestyle- Is your budget stretched out to thin? Or do you have a budget? Look for areas where you can cut expenses and redirect that money into savings. To ensure there are enough funds to last your entire retirement, look for areas where you can cut expenses and redirect that money into savings. Cost cutting can include relocating to regions where cost of living is low, trading big homes for small ones, replacing big cars with economical ones, or opting for public transport to work, etc.,
2. Delay Retirement- Postpone retirement by working a for a few more years, and for longer durations. You do not have to have the same job. Opt for part-time jobs that are less strenuous if you have health issues. Not only will you pile up cash into your savings account, but you may also lessen years from retirement, thus enabling you to comfortably spend long collected cash.
3. Consider Asset Allocation- The biggest mistake that most prospective retirees make is replacing shares for conservative bonds. But they are likely to run out of cash as bonds might fail to reap expected returns amid inflation. Review assets to ensure that your investment portfolio is diversified. Don’t put too many eggs in one basket. Retirees should have a mix of shares and bonds. Also, investment in liquid assets like Certificates of Deposits, etc., is important to keep assets close to home in case an emergency strikes.
4. Opt for Long Term Care Insurance- The biggest drain on your retirement will probably be a catastrophic illness. While planning retirement, sign up for long term care insurance that provides for cost of activities like adult daycare, home care, visiting home nurses, convalescent care among others. Do not opt for least expensive plans as they might exclude important benefits. The cost does not vary much and the earlier you purchase the policy the more affordable and cost effective it will be. Statistics say that 2 out of 4 will need long term care.
5. Sign Up for Healthcare- As you evaluate retirement needs, check if you have a health insurance plan as healthcare proves most expensive for retirees. Know if your employer offers health benefits for retirement. If not seek private insurance as soon as possible. The Federal Government program (Medicare) has an enrollment period which starts three months before you turn 65, covers hospital, medical, and drug costs. Remember Medicare does not cover 100 percent of everything. For instance, it does not provide for the cost of dental care, hearing aids, personal care and non medical services, etc.,
And remember, life insurance is one of the most important feature of a family’s overall financial plan. Contact a licensed life insurance agent like Vickie Stephens for free life insurance quotes today.
Vickie Stephens, Insurance Agent | Auto Home & Life
3100 Capitol Avenue, Suite E
Fremont, CA 94538-1527