Finances & Money

The 20 Minute Retirement Plan

When you retire, you’ll looking at a new horizon and contemplating what you’ll do with all your new-found freedom.

Perhaps, you’re planning on something as relaxing as fishing all day or something as demanding as writing the Great American novel. Regardless of your decisions, your best course of action is to redirect the positive attitude you’ve developed over many years of hard-work toward focusing on new a whole new set of accomplishments.

Here are three tips on planning for a comfortable retirement:

  1. Consider the benefits of getting final expense insurance.

Final expense insurance will take care of your funeral costs. This type of insurance, also known as burial insurance, is like life insurance with some crucial differences: it’s much easier to qualify for this type of insurance, and you won’t need a medical checkup.

It’s also a highly specific type of insurance, explains PolicyZip, that will pay your family for any last medical bills and cover all costs associated with your funeral arrangements.

There are only a few basic steps you need to take to get this type of insurance:

First, select a plan you like.

Second, designate a beneficiary.  If you can’t decide on a beneficiary, you can have the payout sent directly to the funeral home of your choice.

Third, pay a monthly premium. Since funeral costs can range from $7,000 to $12,000, this insurance policy will save your family this financial burden.

  1. Think twice about relocating.

Many retirees plan on moving to an area with lower real estate costs and taxation. While this appears to be a logical strategy, you’ll discover new costs that you didn’t expect. For instance, after selling your large home and downsizing, you might find out that you must pay higher property taxes on your new, smaller home.

Yet, even if you’re right about moving to an area where the housing and tax costs are less, you may be surprised to find food and transportation costs more. Other surprises might be that you’re lonelier, that you don’t have access to high quality medical centers, and that you spend more on travel costs to visit your family. You may also find fewer shopping centers and recreational facilities in town.

Although moving from a nice neighborhood in the suburbs to a small town might appear to be a logical decision, it doesn’t always work out. Many people end up returning to their familiar neighborhood.

So, before relocating, research property and sales tax, as well as the basic cost of living, ranging from grocery to utility bills.

And some other things you may also want to research is your proximity to high-quality medical care, access to public transportation and a major airport, and the availability of services for senior citizens.

  1. Plan to organize your money in retirement.

You will need a plan for your retirement money.

A certified financial planner can help you design a cash flow scenario to live comfortably on your pension, social security, and investment income.

Another thing to consider is the impact of inflation.  So, be sure that all your calculations factor in the purchasing power your money will have in the future and that your investments keep pace with the rate of inflation.

A New Beginning

The main thing to keep in mind when you retire is that your active life hasn’t come to an end, you’re looking at a new beginning. It’s a time to take up your favorite hobbies and develop fresh new interests. Today’s 65-year-old can expect another 20 years of retirement. By planning well ahead of your retirement years, you’ll have more than enough money to live comfortably.

 

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Susan Paige

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