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.

Image source: financialbuzz.com

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.

Image source: flickr.com

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

For a Secure Retirement: Smart Financial Decisions in Youth

The young and ambitious working class has a strong appetite for spending on travel, designer clothes, gadgets, and even concerts. Their relative freedom from responsibilities, stress experienced at work, and excitement over new things have the biggest influence on their spending habits.

While there is nothing wrong about indulging in life’s luxuries, financial imbalance often results from the failure to forgo current consumption in favor of building a stash for the future. Failure to plan for future financial responsibilities can be disastrous. Below are some things that the young ones must consider to ensure a secure, sustainable, and worry-free retirement.

e2f3854e-377e-4a7e-8c79-f81c183dfee9_149005186.jpg
Image source: finance.yahoo.com

Cut down on unnecessary spending
People tend to spend on relatively unimportant and fleeting material things that satisfy short-term needs. The want to have the latest model of a phone, the false need to drink expensive coffee at leading coffee shops, and the desire to acquire expensive clothes are all behaviors permitted only by a robust cash flow and by already met basic needs (fixed daily expenses, emergency fund, etc.).

Maximize work benefits
Starting a job at any company is not a guarantee of high earning potential. It is vital to choose a career that has a slightly higher starting salary but still leaves enough room for growth based on skills, competence, and work ethics. It is best to look for a company that offers a retirement plan, health and life insurance, recurrent salary increases, an incentive system, and savings-like employee benefits. These, while not necessarily the key to absolute financial freedom, are the building blocks to a secure future.

countdown_retirement.jpg
Image source: forbes.com

Responsible marriage
Marriage is a long-term commitment that requires emotional maturity, financial preparedness, and a strong socio-spiritual foundation. Aside from the fact that a divorce is expensive, similar marital catastrophes will also divide financial assets that would create a bump in the long-term financial plan. The young must have a practical and reasonable view of marriage before making the commitment.

Get insurance and start building an investment portfolio
In investing, time is one’s best friend and worst enemy. Starting young is always an advantage because it provides a wide horizon to build wealth and try out high-risk but high-return endeavors. As for insurance, premium prices are at their cheapest for young and healthy individuals. Modern insurance products now also offer living benefits that activate without requiring the occurrence of a life-threatening incident.

Linda O. Foster specializes in estate and retirement planning, offering tax-advantaged low-cost investments and financial planning guidance to her clients. For similar articles, click here.

countdown_retirement.jpg

For a Secure Retirement: Smart Financial Decisions in Youth