If you are like most, the time you have looked forward to all of your working life can become the most stressful. If you have asked yourself the following questions, you are not alone:
- When can I retire?
- How much can I spend?
- When should I turn on my Social Security?
- How do I pay for healthcare and how much will I need?
- What legacy will I leave my family?
- Etc., etc. etc.
These questions not only make your head spin but can also keep you awake in the middle of the night.
In previous columns, we have talked about Medicare, long-term care and Social Security, but what about $$$?
Yes, whether we like it or not, $$$ is the difference between a comfortable, secure retirement or continuing to work.
Some of us are fortunate and have a pension plan in addition to our Social Security to finance our retirement, but most of us are not in that category. Plans such as 401K and 403B are where most of the retirement dollars are today. Most companies have discontinued pension plans, and even if they do match contributions to our 401K, it is up to the individual to finance most of his or her retirement.
If you have not had a financial analysis completed, it is not too late to do so. A good analysis will take all of your resources and expenses and adjust them based on inflation to give you a snapshot of your retirement. Any plan that you have needs to be reviewed and adjusted based on your current situation.
As your health declines, how will that impact your plan?
What do you want and can afford to do during retirement?
What are your hobbies and passions?
Many of us have decided to continue to work as we age, either full or part time. Insurance actuaries tell us that we have individuals today who will live to age 120.
How will you finance a retirement that could last more than 40 years?