Retirement is that stage of one’s life when the average person is most vulnerable and least resourceful. However, some people fare better than others in these critical times, and mostly, it is intelligent retirement planning that helps them there. What you need to realize is that to be worry-free once you have retired, you will have to work for it all your life. But hey, the benefits are worth it – you’ll live the final leg of your life in absolute comfort and peace of mind. Here are some important life decisions that’ll help you secure your retirement!
Start Catering For Your Retirement Early On
The adult years of your life are when you should be most concerned about your retirement plans. This is the time when you’re focusing on your career and producing your highest output – the perfect time to start planning for your future. Begin looking into retirement schemes and make investments that you can bank upon when you retire. If you’re not too clued up on investments and savings, take professional help and consult a financial advisor.
Choose Your Individual Retirement Plan Intelligently
Individual Retirement Accounts or IRAs can be set up in two modalities – traditional IRAs and Roth IRAs. Both have their own merits and demerits, though many a time, Roth IRAs are considered a better investment for a secure retirement. This is because distributions on Roth IRA are tax-free in most circumstances, this allowing availability of larger cash flows. However, you should decide regarding the same after due diligence and careful consideration of both prospects.
Always Plan For Medical Emergencies
Medical issues are likely to crop up at some time through the course of your life. The older you get, the more vulnerable you are to diseases and disability. If you do not have medical coverage to pay for treatment expenses, your savings may begin dwindling rapidly. If this occurs once you have retired, your financial situation may get very strained. Therefore, to cater for medical emergencies, sign up for a medical plan that covers long-term health care as well as medical emergencies.
Consider Getting a Life Insurance and/or Annuity
Life Insurance policies are a means of securing the future of your loved ones which an immediate annuity assures a regular income post retirement. To this extent, both these investment options are a safeguard for your retirement. With a Life Insurance, you can secure tax-free benefits for your spouse/beneficiary to ease their life circumstances. With an annuity, a certain portion of your savings is available to you as a regular income for the rest of your life. Having such funds to bank upon assures much peace of mind during retirement.
Be Intelligent About Age of Retirement
In this day and age, one needs to figure in increasing life expectancy rates while planning their retirement. The age at which you retire is of crucial importance. If you retire prematurely, you have a longer retirement period to cater for. On the flip side, the longer you remain employed, be it in a regular position or as a freelancer/consultant, you will manage to contribute further to your present upkeep as well as sustenance post-retirement.
Increase Assets You Can Cash In On Later
If you keep gradually increasing assets that you can cash in on later, you’ll have a greater safety net once you retire. Acquiring property, bonds and articles with resale value including jewels, antiques, etc., can be of great help. In the unfortunate circumstance that you need emergency cash during retirement, you’ll have the option of selling these assets to acquire the desired funds. You may build a wealth of such assets through the course of your life while also upping your standard of living.
Keep Up With Changes in the Industry
Every year, new policies and investment clauses are released by banks and financial institutions. Many of the new schemes are targeted at that very audience – the ones who are aiming to save for the future. Keep track of these new additions so you can take advantage of any good retirement scheme that is released. However, make sure you go through the pros, cons, terms, and conditions of new policies that are not tried and tested. Engage a financial advisor or accountant to help you out if you’re not confident of your decision.
Save for the “Rainy Day” Too
Wealth Management Professionals believe that apart from having IRAs and investment-earnings for retirement, save for the “rainy day” too. Have at least a year’s worth of expenses catered to in a separate account for any unforeseen emergencies that may befall you. Yes, this adds another dimension to retirement planning and financial management, but in the long run, it will only secure your future further.