Planning for retirement is difficult. Today, nest eggs are much smaller than they have been in the past. Many individuals and families plan for retirement at the last minute. This can cause problems.
Save And Invest
Americans need to save today, not tomorrow. It takes a lot of will power to forego today’s pleasures and have money for the long run.
Retirement Is Not A Permanent Vacation
Some TV advertisements present retirement as a permanent vacation. You see pictures of individuals playing golf in a Shangri-La type atmosphere. Americans are living longer today. The Shangri-La atmosphere presented in those pictures can become boring and stale. Even if you can afford living in a retirement community of that type, life expectancy can stretch retirement for as long as thirty or forty years.
A Study by Fidelity Investments indicates a couple who are 65 years of age when they retire will need more than $250,000 to pay for medical expenses throughout their retirement. These medical expenses do not include nursing home care. The study found the average medical expenses for a 65 year old couple amounted to more than $530 per month. It should be noted Medicare is not free and doesn’t cover all medical expenses!
Be Careful With Your 401K Plan
A 401K Plan is retirement plan. Many people borrow large sums from their 401k plans and are not able to pay these sums back. Depleting your 401K plan can have a significantly negative impact on your ability to retire.
Be Careful Of Your Priorities
Steven Cuhna, a certified financial planner with Bay Street Financial Services, suggests you remember the 5 P’s regarding retirement, Prior Planning Prevents Poor Performance. You should have a plan that analyzes your financial goals, retirement needs, investment and estate plan. You may live a long time but you will not live forever. Having a will and/or irrevocable trust may be necessary to help you preserve your assets. Another solution is to never stop working!