Just because you have reached retirement age does not mean your financial planning has ended. In fact, you still have a long life in front of you and a family that needs your support. Here are five types of planning and strategies you should consider after retirement.
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Examining Income Streams
Looking at your income streams is the first step towards effective financial planning and implementing the right strategies. Most seniors will benefit from a retirement plan and Social Security, but is that enough for your needs? You may be short when paying for what you want based on your income streams.
The good news is that there are ways to boost your income streams or create new ones to augment your way of living further. However, you will need to know where you stand before taking action.
Medicare Part D
One of the most important expenditures that most seniors will make is prescription drugs. While Medicare Part D alone may not be enough for some seniors, combining it with gap insurance can provide substantial coverage that protects your income. When you consider just how much is spent on healthcare, reducing the out-of-pocket costs of purchasing prescription drugs goes a long way toward protecting your finances.
You had probably heard that retirees could live comfortably on 80% of the income they made when they were working. While you are no longer commuting to work, if you still have large, outstanding debt to pay, that percentage will not be enough. You will need to pay off your mortgage, credit card debt, and any other outstanding debt to get more out of the money you earn. There are advantages to owning your home outright, which can pay off in the long run as well as today.
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Considering that most seniors live 20 to 30 years past the day they retire, the nest egg must stay healthy and growing. Too many seniors find themselves with their retirement savings gone because much of it was not invested in areas that sustain a robust interest rate growth. So, you can still spend a substantial portion of your money on safe sectors but still generate enough interest to keep you ahead of inflation.
Life insurance provides reliable financial protection once you have reached retirement age. Whether you choose a whole-life policy that provides dividends and the opportunity to cash it out for a profit or a less expensive term policy that protects your family’s finances, getting life insurance for those over 65 is a wise investment.
Of course, other factors play a vital role in your financial planning. Limiting unnecessary spending and creating new income streams to augment your retirement savings are important. By implementing the right financial planning and strategies, you can get the most out of your retirement savings and live the way you want.