5 Things You Can Do NOW for a More Comfortable Future
3 . Have a budget and stick to it !
Unless you are part of the ‘ rich and famous ’ our income is fixed and we all need to follow a budget . Unfortunately , we live in a ‘ I want it now ’ society so it isn ’ t always easy to stick to a budget . However , if you want to be comfortable in retirement you will need to learn to budget . This doesn ’ t mean you won ’ t enjoy life – it will mean you won ’ t incur huge debts which you can ’ t repay . Learning to budget means retirement should be more comfortable and less stressful .
4 . Insurances
Do you know if you are adequately covered ? There are various types of insurances , which are recommended and should be evaluated regularly .
By Sue Loncaric | sizzlingtowardssixty . com . au
Let ’ s face it no matter what age you are , most of us really don ’ t do a good job of knowing what our financial future will look like in retirement . We work to pay off our mortgages , educate our children and still hope we have enough put away to provide a comfortable lifestyle when we are no longer working . A financial planner is the best place to start . Even if you are already retired , it ’ s never too late to get guidance to help prepare for your future .
Here are five things you can do to secure a better retirement :
1 . Meet with a financial planner
Most of us have never had a professional financial plan or assessment completed on our finances . Having a financial assessment will clearly define where you are and what you need to do to provide future financial security .
A financial planner can also suggest ways to utilize your assets in retirement and any tax benefits available to you . Should you take your 401 ( k ) as a lump sum ? Should you have an annuity ? Should you have a self-managed retirement fund ? These questions can be answered by a competent and reliable financial planner .
2 . Calculate how much you will need in retirement
If you sit down and list what you think your future expenses will be in retirement and also include ‘ wish lists ’ such as travel , entertainment and lifestyle , you may be surprised at how much you will actually need to retire . Again , a financial planner can assist with this or there are web-based calculators which will give you an indication of how much 401 ( k ) or other forms of investment you will need , to have the lifestyle you want .
• Life insurance Life Insurance policies come in many forms so be sure you understand what type you have . Term life vs . whole life insurance ? It may be time to re-evaluate to decide how much you ' ll need .
• Medical Insurance If you ’ re younger than 65 , odds are you still have coverage through your employer , but are paying into it . Be sure to understand the value of your insurance , how much you are paying into it and what it covers . From 65 on , this changes with medicare which you ’ ll be enrolled in and need supplemental insurance to cover what medicare doesn ’ t . Do your homework with regards to supplemental insurance , understand the costs , the co-pays , deductibles , etc .
• Home & Contents Are your possessions adequately covered ?
• Funeral Insurance This is not something we like to think about , however , it is important that you know your family won ’ t need to have the added burden of finding the funds for your funeral . They will be emotional and stressed enough without this . Funeral insurance is relatively inexpensive , so investigate this option rather than leaving it to your loved ones .
5 . Bump up your savings
Odds are you have been saving for retirement , either on your own , or if you are lucky enough , through a company pension plan . Use these years leading up to being 100 % retired to increase the amount you are putting away . Today , many of us in our 60 ’ s are still working either by choice or necessity , so try to cut back on other places to put more into your savings .
Retirement may seem a long time off , especially as we are living and working longer . We can ’ t assume that there will be a government pension in the future for everyone , so start thinking about how you will fund your retirement so you can enjoy these fabulous years !
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