5 Things To Do Before You Retire
By: Solid Serenity Legal Solutions
For many of us, retirement is an ultimate long-term goal. But, many Americans are not adequately prepared for retirement.
The average retirement lasts 18 years. The average living expenses for retirees are $46,000/ year and healthcare expenses average about $4,800. So, the average American will need $1 million saved to retire fully and comfortably. The average American aged 56 – 61 only has $163,577 saved for retirement.
If you’re planning to retire, you need to prepare yourself. Here are 5 things to do before you retire.
(1) Consider Selling Your Home
Though many people become emotionally attached to their homes, the homes we built with our families are rarely the same homes we need when we age. Larger homes can be problematic for older individuals, and they require more financial investment and upkeep.
As we age, it becomes more difficult and stressful to keep up with the maintenance of a larger home. When you’re preparing to retire, consider downsizing to a smaller space.
(2) Simplify Your Investments
Over your lifetime, you will accumulate many assets and accounts. As you get older, it helps to consolidate accounts and simplify your investment portfolio.
Organizing and consolidating your assets will save you a lot of time and headache and make it easier on your loved ones when they need to help you.
(3) Update Your Estate Plan
Many of us do not have an estate plan. For those who do, they often set it and forget it. That’s a problematic strategy.
As we age, our needs and goals change. Be sure to look at your estate plan before retirement to make sure all the assets, heirs, and your goals are up-to-date. While you’re at it, review the beneficiaries on your retirement accounts and life insurance policies. You do not want your family to go to Court because you didn’t update your beneficiary form after divorce or the death of a beneficiary.
For help reviewing your plan, book an appointment online.
(4) Make a Plan for Long-term Care
One of the biggest expenses of retirees are living facilities. Assisted living and nursing homes costs average about $4,000 – $6,000 per year. With our life spans increasing, the need for long-term care when we age is increasing as well.
Long-term care planning is different than estate planning and often involves some combination of (1) insurance, (2) self-funding, and (3) Medicaid planning. If you want to leave a legacy for your loved ones, you need a plan for your long-term care.
(5) Plan Your Time
When you retire, you will have a lot more time on your hands. You need to plan how to spend that time.
From travel, to volunteer work, to working part-time, the possibilities are endless. But, knowing what you want to do and working toward that goal can make your retirement much happier.
Retirement is the American dream for our later years. If you want to achieve that dream, you need to begin working on your plan today.
Let us help you build your team. Contact us.