04 Nov 3 Things You NEED to do BEFORE Retirement
Retirement – the longest vacation you’ll ever take. You have grand day-dreams about what your post 9-5 life will look like, but have you really made sure you’re ready for retirement? Long before you start emptying out your desk for the last time, you need to consider whether or not you’re financially prepared to start the new life you’ve envisioned for yourself.
While there are many areas to cover regarding finances and retirement preparation, below are 3 key issues we hope every hopeful retiree resolves before that final clock-out.
1. Get out of Debt
The dreaded D-word. The word debt can conjure up feelings of anxiety and shame. One thing for is sure is that you’ll want no part of it when it comes time to retire. Not only is it not a good idea financially, it’s even worse idea psychologically. Imagine waking up to coffee-scented, sunlit mornings and then remembering you still have unresolved college debt…that’ll put a damper on your day.
If you have debt now – get on it and get rid of it. You should never go into retirement with excessive debt – especially credit cards as they typically carry the highest interest rates. If you have credit card debt, make this your primary focus. Go into retirement with a fresh financial slate and breath of fresher air.
2. Research Long-Term Care Options NOW
“But I already have health and life insurance,” you might think. That’s great, but did you know that health insurance is different from “long-term” care? Long-term care insurance is for unforeseen, debilitating conditions that require nursing care for up to 10 years.
Can you or your loved ones afford a decade’s worth of out-of-pocket medical expenses? Probably not. If all you’re planning for are golf trips and vacations you may be in for a rude awakening.
Researching and purchasing long-term care in your 50s is also smart because you’ll qualify for lower rates that can be locked in for life. If you wait to purchase long-term care in your 60s or 70s, you’ll end up paying much more and may not receive the level of quality and flexibility you desire.
3. Prepare a Budget
This isn’t a budget for current living situation. This is future budget to help you plan and predict how much your living expenses will be as a retiree. While there are some expenses that naturally go away once you stop working (work commute expenses, lunches, work clothes), there will be others that will increase.
One area people overlook is extended travel. Remember, you’re supposed to do things you haven’t had the chance of doing before; so, if traveling is on your bucket-list you need to think of “where, how often, and how long?”
Once you have the bare bones of your budget laid out you’ll have a much better idea of what your post-work life will look like from month-to-month and year-to-year.
Research, Prepare, and Act with Reliance
We can give you all the helpful advice in the world, but sometimes the hardest part is putting all of the pieces together into a plan of action. If you need help understanding what it takes to realize strong financial freedom in light of your retirement – let’s talk today.