Are you ready for retirement?
It might seem like a world away, but it could happen sooner than you think. Almost half of Americans leave the workforce earlier than they plan to.
If you’re one of them, a retirement plan will help you deal with everything that comes with that. In this post, we’ll give you everything you need to start your preparing for retirement checklist.
What Your Preparing for Retirement Checklist Needs
Read on to start planning.
Retirement Savings Accounts
An Individual Retirement Account (IRA) will allow you to put money away without having to pay any tax until you withdraw.
If your employer offers a 401(k) or another type of sponsored retirement plan, make that most of that, too. Many employers will match your contributions up to a certain amount, so you can get more out of your savings.
You can put in up to $18,500 per year this way.
A Well-Planned Budget
It’s absolutely essential that you map out a budget before retirement.
Your financial situation could change drastically once you retire. You’ll be spending less on tax, but your medical expenses are likely to increase. Plus, you might also be spending more on leisure activities, since you’ll have much more free time.
Plan out all of your savings and expected outgoing payments along with any extra income, and see how much you have leftover. That will allow you to see what kind of lifestyle you can afford to have in retirement.
Try a dry run for a month, too. You’ll need to test your budget out to see if it’s realistic. Then, you can make some adjustments.
As you get older, health issues will start to crop up. If you’re not prepared for them, they could cost you tens of thousands of dollars.
The last thing you need when you retire is to be left out of pocket, so you should consider protecting yourself by getting medical insurance.
Two federal programs available to you are Medicare and Medicaid. There is a 7-month signup window, which begins four months before you turn 65. Make sure you don’t miss it because if you do, you could end up paying premiums.
Not everything is covered by these plans, so you might want to consider some extra cover. That’s where Medigap comes in. It’s a supplemental policy for Medicaid to cover extra expenses.
Life insurance is a protective measure for your family, but it’s also an essential part of a preparing for retirement checklist.
If you choose the right plan and use it wisely, it can help you manage your taxes, protect your income, and get some tax-free cash flow.
Finding competitive life insurance rates doesn’t have to be difficult. Don’t be afraid to ask for professional help from a financial counselor if you need it.
Make Your Retirement Dreams a Reality
Once you retire, you’ll have lots of free time to do the things you’ve always wanted to do.
If that includes taking lots of vacations, you should consider purchasing a holiday home. A timeshare is a great way to do that.
Find one in your favorite holiday destination, and you’ll have a vacation spot you can visit again and again. To find out more, see our post on how timeshares work.