Maintaining Financial Security after Retirement

It is never too early to plan and start saving up for retirement to avoid financial worries. Nowadays, people really have to take retirement security as a significant responsibility.

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Being debt-free or at least, reducing major debts before retirement is essential to ensure that you will not run out of funds or outlive your assets post-retirement. Financial experts advise owning a home before or at retirement. Getting rid of mortgage ensures that you have sufficient funds for other expenses such as utilities and insurance payments. Create a plan to eliminate debt and avoid unnecessary financial burdens. Being debt-free before or at retirement frees you from worry and gives you a tremendous sense of achievement.

Being informed about retiree benefits, tax strategies, and Social Security is also important in achieving financial security after retirement. Know the best time to tap into your benefit to guarantee sufficient monthly payments. Enlist the help of a reliable financial adviser to assist you in utilizing smart tax strategies and maximizing your retirement benefits.

Preparation and planning are the keys to a successful retirement. It is important to create saving and spending plans and to determine the amount of money you need for your retirement. Update important documents every five years and consider estate planning. Invest in long-term care insurance as well to cover costs of home care or assisted living.

A sound financial plan can deliver the financial security that will allow you to live the desired lifestyle you worked your whole life for. Talk to a financial adviser and start planning for your retirement now.

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Linda O. Foster is a federal employee benefits specialist based in Poulsbo, WA. Subscribe to this blog for more articles about financial and retirement planning.

Maintaining Financial Security after Retirement

Planning a Trip after Retirement: The Financial Side

One of the biggest appeals of post-retirement is the possibility of traveling and seeing a lot of new places around the world. However, traveling is generally not cheap and a lot of planning should be made to make sure retirees can afford it. So what steps should be made?

First, look around. Is there anything in the house that cannot be left behind for too long? The entire schedule of the trip depends on this, as much as the cost of the travel depends on the schedule.

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Once the schedule is finalized, the question of how healthy the nest egg is comes into play. A healthy savings can shoulder a trip or two for a month. But if retirees want to stay in world-class hotels in cosmopolitan cities, then the bank account should match the retiree’s expectation.

Another option for retired couples is to move out of their home and into a more affordable place. They can either sell their home or have it rented out. This way, their bank accounts are replenished, giving them means to travel.

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Retirees also have to consider their limitations, and think about what to do once they decide it’s time to come home. So, before going on a trip, retirees should have something to come home to.

There is a great amount of freedom to be had after retirement, and experiencing the sights and sounds in far corners of the world is as good an endeavor as any. But as in all endeavors, careful planning is always paramount.

Linda O. Foster from Poulsbo, WA, specializes in federal employee benefits. She helps in estate and retirement planning for people who want to reach their financial goals. To learn more about how Linda Foster helps retirees save money, visit her company’s website.

Planning a Trip after Retirement: The Financial Side

The Five Basic Steps to Retiring Wealthy

Planning early for your retirement is key to achieving long-term financial goals. The process is quite extensive but need not be too demanding or exhausting. It may seem like a tall order, but it can actually be done in simple steps that you can confidently accomplish (with proper discipline, of course):

Hand holding a Retirement 3D Sphere on white background.
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1. Decide at what age you would like to retire. Setting the time to bid goodbye to employment will give you enough opportunity to start building your nest egg. At any age, however, saving for retirement should start 20 to 30 years earlier. So if you wish to retire at age 60, start planning at age 40 at the latest.

2. Determine how much you will need for retirement. Calculating for your future financial needs as a retiree does not require complex mathematical equations. Retirement income will largely depend on variable factors such as your current earnings, your desired kind of lifestyle, and even unforeseen events like illnesses and medical expenses. For the best estimate, however, it will be of great relief if you seek the help of a professional financial planner to assist in computing for your ideal retirement fund.

3. Build your retirement fund. While stashing cash in the bank is not necessarily a bad idea, it would make more sense to park your money in more high-yielding securities such bonds, stocks, UITFs, or mutual funds. These investments are quite risky in the short term, but they have consistently shown massive returns over time.

4. Know what resources you have. After identifying the size of the fund that you need for your retirement and deciding on which money machine to use in building the fund, now it is time for you to check on where to source the fund. The most common source is your current employment or business. Discipline yourself in allocating a comfortable portion of your income for your retirement on a monthly basis. Other sources that you can also consider are bonuses, commission income, existing savings, liquid assets, or even inheritance if you have received one.

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5. Periodically review your retirement plan. It is very important that you reassess your retirement plan every now and then. Make necessary adjustments especially that life has plenty of surprises that would often force you to rethink your finances.

Linda O. Foster is a Washington-based federal employee benefits specialist specializing in estate and retirement planning. For more about her background, click here.

The Five Basic Steps to Retiring Wealthy