When you’re about to retire or you’ve just retired, your first thought might be about how you’ll enjoy all your newly found free time. Maybe you’ll take that trip to Europe you’ve always dreamed of, or maybe you’ll simply enjoy filling your days with activities you love, like golfing, reading or working in your garden. However, before you call a travel agent or start filling up your daily calendar, it’s important to take a look at your financial portfolio to be sure you’re prepared for whatever life might throw your way.
Retirement Planning for a Financially Sound Future
Have you recently assessed your financial situation? Retirement planning also means ensuring that if your health needs were to change, you have the means to address the costs associated with the care you may need to keep enjoying the highest quality of life. This is especially true if any form of long-term care may be needed, like assisted living or skilled nursing services.
Unfortunately, no one really knows what the future may hold with absolute certainty. However, you can ensure a comfortable lifestyle by properly planning ahead with these financial tips:
- Seek professional financial advice. When it comes to managing your finances for retirement, seek the services of a professional financial advisor, who can help ensure you’re making sound decisions with your investments and savings. There’s no harm in getting advice from friends and family members about what worked best for them to prepare for retirement, either, but a financial advisor will make sure you truly have the funds you need to relax and enjoy your new lifestyle.
- Properly budget for the long-term. Without a budget, you might eat up all your savings within the first few years of retirement, and according to a survey conducted by Wells-Fargo a few years back, only one-third of Americans have a financial plan that will see them through retirement. Create a long-term budget plan and stick to it, understanding that you need to be prepared for the changes in your health that could occur down the road. This means you will most likely incur costs for long-term care at some point.
- Keep your portfolio updated. Remember, changes in your health and lifestyle can affect your current portfolio, so make sure you’re keeping it as updated as you can. Although you don’t know what your specific needs will be, you should still try to plan ahead as much as possible.
- Eliminate as much debt as possible. Retirement is a time to reevaluate your current lifestyle, and this involves making sure you’re living comfortably within your means. Before you retire, you should be as debt-free as possible, and if you aren’t, now is the time to buckle down and pay down everything you can. Look for areas where you can cut frivolous costs and try to avoid taking on any new debt, such as opening a new home equity loan.
- Keep working on building your retirement savings. Stay focused on your financial health during retirement. What does this mean? First, along with managing your debt, work on building your retirement savings as much as possible by skipping expensive trips or putting off large purchases. Downsizing your home and moving to a senior living community can also help limit some of your monthly expenses.
- Understand the basics of inflation. Seniors often forget to factor in inflation as they plan for their future. Remember that thanks to inflation, your money will gradually be worth less over time, so it’s important to ensure you have the adequate funds to live comfortably not only today, but in the years ahead, too.
A Comfortable, Vibrant Future at Concordia Life Care Community
At Concordia, we believe your retirement years should be your best years. You’ll enjoy a maintenance-free lifestyle, a variety of services and amenities, and a secure plan for your future. To learn more about our continuing care retirement community in OKC, please contact us today.