No matter the age of a person, taking steps now to save for the future can help create a comfortable retirement. Everyone envisions their retirement to be enjoyable and comfortable. However, some may find they need long-term care, and the last thing anyone wants is to run out of money. In Texas, people are making changes now to ensure that their senior years are happy and healthy ones.
One may want to strongly consider having six to 12 months of living expenses tucked away for unexpected emergencies. In the event of serious illness or job loss, it is important to have a plan in place and funds to cover expenses such as a mortgage or rent, utilities, insurance, and taxes. Consider canceling life insurance policies with high monthly fees in favor of long-term care insurance instead. Having a savings fund for emergencies will prevent the need to tap into retirement accounts.
Now is a good time to determine how much money will be needed for retirement. Consider fixed or immediate annuity plans to supplement Social Security and pension income. Financial experts suggest increasing savings every year to prepare for a successful retirement. Make the most of IRA and 401(k) accounts and take advantage of employer matching. Contributions are much higher for those over age 50.
Planning for retirement and long-term care can be daunting. In Texas, it may be in one’s best interests to consult with a financial advisor and an estate planning attorney to discuss any of the above items in greater detail, along with options such as wills, trusts and health care proxies. Strategic planning now can lead to stress-free golden years ahead.
Source: fool.com, “11 Smart Retirement Moves You Can Make Right Now — The Motley Fool“, Selena Maranjian, March 12, 2018