We need this retirement checklist that ensures our financial safety once we hand our gloves.
After working tirelessly for years for our family, maybe it is the right time to stay off of our office and take a step towards the woods hunting or spending time along the coastline with that beautiful sunset. Yes, we are talking about retirement and almost all of us look forward to that.
However, we have seen many people who still struggled even after their retirement. With that said, we will help you guys manage our investments and properly gear you up for that wonderful retirement that we all dream of with these guidelines.
Keep Our Emergency Find Savings Account Up and Running
Many financial advisors recommend that we should have at least three months worth of savings that will accommodate our average monthly expenses for the whole quarter. It doesn’t matter whether it would be from a checking or a savings account and the reason behind this is simple.
We have to make a breathing room just in case we experience some delays in our pensions. With these three-months’ worth of money that will cover our expenses for the next couple of months, we should not worry about getting behind with our bills and other necessities.
Have you ever thought about what our monthly budget will look like after retirement? We better look into this right away and get our credit cards ready since the transition between working and retirement age is quite significant.
The first thing we should do is give a realistic estimate of what we should spending our money with. Once we got the baseline, it might be better to add a couple of dollars into the mix. It is better to overcompensate our budget than underestimating the possible expenses we will face and that’s one of the biggest mistakes people under retirement makes.
Medical care and health insurance can be easily overlooked by most people, especially those who are on the verge of retirement. However, this might be one of the most important things we need to consider since it has something to do with our overall health.
Medicare sure is a good thing, but it will only begin once we reached the age of 65. Also, it is worth mentioning that Medicare would most likely cover about 50% of our total medical expenses so be on the lookout for a reliable health insurance policy in the market before our retirement.
Retirement Income and Taxes
Taxes are a big part of our current society and we should be aware that even upcoming retirees are not exempted from the rule. With that in mind, many people who are on the verge of retirement still neglect to include taxes in their calculations so we suggest seeking out advice from a professional financial advisor and see where we stand.
Income and Expense Timeline
Getting a map of where our finances are sitting at would be beneficial not only to those upcoming retirees but it would also help most people along the way. Track where our potential income will most like begin and the same goes for possible expenses we might have to come across in the future. This will ensure that we will have a clear representation of how e could manage our cash flow.
An investment plan is a great way to keep tabs on our finances. Once we have become well versed in understanding the things that we need for our investment, then we can ease our minds when our retirement date comes.
There are lots of things that we can add to this list but we think that these are the top tips that we can share to secure our finances before, during, and after our retirement.