All of us have that perfect vision of what retirement will be like.
A tropical breeze blowing through the palms above us while we sip an exotic drink.
Raising our coffee mug from the RV cup holder in salute to a majestic sunrise over the Grand Canyon.
Treating the kids and grandkids to a magical day of memories at the theme park.
Whatever we want, the one realization we need to come to terms with is that bad things happen. As we get older health risks increase causing more wrenches to be thrown into the gears driving our dreams.
For a majority of the US, Medicare is utilized, and retiring around age 65 a worthy goal.
Unfortunately, it doesn’t cover everything. Seniors are expected to pay anywhere from two thousand to over seven thousand dollars a year for anything from deductibles to out-of-pocket expenses. (http://www.medicare.gov/) This requires planning, and setting aside funds that could limit your dreams. It’s important to investigate enrollment periods and supplemental insurances (like those offered through common sources like AARP https://www.golong.com/) before you retire, to avoid any penalties.
Are you protected if, heaven forbid, you’re not able to work due to disability? None of us expect it to happen, but again, increase in age equals an increase in chances.
Most employers offer a basic disability insurance that allows for a certain percentage of your annual salary to be claimed in the event you can’t work due to an accident. It’s important to check with your human resources department or boss, to see how and where you’re covered. If you find the coverage inadequate, contact a local insurance broker to find out how to cover your bases.
Finally, most of us have 401ks and other investments that we plan on using. How does that figure into your retirement? How much will you need a week, a month, a year? Do you have enough invested? Are your investments safe or can a quick slip of the market devastate your portfolio?
Financial illiteracy is something no one wants to admit, and it’s best to consult someone who can help, letting your pride take the back seat. Whether an accountant, financial adviser, or a person who does both, find out where you stand once you retire and make certain you have the funds to cover any mishaps.
All firms and brokers are different, so when choosing, look for referrals. Friends, neighbors, coworkers, and check those individuals out. Pick someone you’re comfortable with, and make sure they have a proven track record so you’ll reach the happy ending you deserve and in good shape.