Must-Do Financial Moves for Upcoming Retirement
Retirement age is approaching, and soon, every financial decision to make seems overwhelming just to think of. It’s understandable – after all, retirement planning is no easy feat. Questions like, “How should I do my portfolios? what does Medicare cost? Even should I downsize my home and lifestyle?” can be confusing.
However, with the right guidance and some smart moves, you can set yourself up for such a beautiful retirement age with no financial issues. In this blog post, we’ll explore some must-do financial moves to help you maximize your savings, plan for medical expenses, review your social security benefits, and update your will and beneficiaries. Let’s get deeper into these important topics.
Make More Retirement Savings With Roth IRAs
Roth IRAs, or individual retirement accounts, are a popular way to save for retirement. As opposed to traditional IRAs, the contributions you make to a Roth IRA are taxed upfront. However, when you withdraw funds during retirement, they’re tax-free – which can be a huge advantage. The biggest pro of Roth IRAs is that there’s no age limit on contributions. As long as you have earned income (i.e., from working), you can contribute up to $6,000 per year if you’re under 50 years old and up to $7,000 if you’re over 50.
Plan for Medical Expenses in Retirement
Probably the most concerned financial consideration for retirees is the unexpected medical expenses. As time gets closer to the sunset of life, our healthcare needs tend to increase, and these costs can quickly add up. That’s why it’s essential to plan ahead and be prepared for potential medical expenses during your retirement years. So go for your health insurance coverage in retirement. Medicare only covers a portion of healthcare costs, so you may need supplemental insurance or a Medigap policy to help cover additional out-of-pocket expenses. You can even go further, which is better, to get long-term insurance.
Review Your Social Security Benefits
As you approach retirement age, reviewing your Social Security benefits is essential. This includes understanding how much you can expect to receive and when you’re eligible to start receiving payments. To begin, create an account on the Social Security Administration website. Here, you’ll be able to access your earnings history and estimate your benefits based on different retirement ages. Note that waiting until after full retirement age (66 to 67) will result in higher monthly payments.
Update Your Will and Beneficiaries
As you approach retirement, updating your will and beneficiaries is important. It guarantees your assets are distributed according to your wishes after you pass away. So review the beneficiaries on any life insurance policies or retirement accounts you may have. Make sure they are up-to-date and accurately reflect your current wishes. Additionally, consider creating a living will or healthcare proxy. It’s such a good move to work with an attorney to get all paperwork done pretty well.
Takeaway
By taking these must-do financial moves, you’ll be on the right path toward a comfortable and secure retirement. Proper preparation today will lead to a more enjoyable future tomorrow. So be the master of your own finances now so that you can live comfortably throughout your golden years.
