Do you have enough saved for the retirement of your dreams? If your retirement funds look meager, it's time to talk about how to make your golden years financially worry-free.
Planning for retirement can be an exciting time for many adults – thinking of no longer working, spending time on the golf course, traveling, or enjoying visits with grandchildren. However, your retirement dreams can turn into nightmares if you haven't prepared your budget, determining how much money you should have to retire.
Today, we're talking about you – your retirement goals, finances, and how to ensure that your long-term care, should you need it, can be paid for with your funds.
When you're asking yourself, "How much money do I need to retire?" It's important to think of how you envision spending your retirement. Are you planning to remain in your current home, or do you wish to move somewhere warmer or closer to family? Do you want to travel, or are you more content pursuing hobbies that keep you closer to home?
Making concrete plans for retirement can help you and your financial planner know how best to accommodate them financially.
The answer to how much money you need to retire depends on how you spend your money now. Some things, such as buying new clothing for work, or paying child-raising expenses, may not be part of your budget once you're a retired empty-nester. However, old age can have its own set of expenses, such as medical equipment and prescription medications.
Estimate the amount of income you'll have coming into your house without working (Social Security, retirement accounts, pensions, etc.) and then let’s work out a monthly budget.
Did you know that if your laundry facilities are on the main floor of your home, rather than downstairs in the basement, that you're likely to stay up to six years longer in the house? For seniors who have their house paid for, this can be a huge difference in their expenses.
Moving the laundry utility from the basement to the main floor of the house is one way to renovate your home in preparation for aging in place. Another thing to consider is making room on the main floor for a bedroom if you or your spouse cannot make the trip up the stairs. Making changes now, while you still have an income plus bonuses, can mean the difference in being able to live in your home as you age.
If you're planning for SSI to make up your retirement income, you may have some issues. Inflation, as well as a shrinking amount of money in the SSI "pot," means that you shouldn't have all your eggs in this basket. Ask a professional financial planner how you can start saving for retirement in other ways.